Oracle of Delphi

GM slashes North American truck production

83 posts in this topic

Dave Guilford

Automotive News

April 28, 2008 - 4:36 pm ET

DETROIT -- General Motors today moved to cut full-size truck production in North America by 138,000 units for the remainder of the year.

GM will take out about 88,000 units of full-size pickup production and 50,000 units of full-size SUV production, the automaker said in a press release.

GM said that it is eliminating one shift of production at its full-size pickup truck assembly plants in Pontiac, Mich.; Flint, Mich.; and Oshawa, Ontario; and its full-size SUV assembly plant in Janesville, Wis.

The Pontiac and Flint pickup plants already are idled because of a parts shortage stemming from the UAW's strike at American Axle & Manufacturing Holdings Inc. The Janesville SUV plant is currently running one shift because of that strike. The Oshawa pickup truck plant has reopened temporarily with limited production.

The decisions were made to bring production capacity more in line with market demand, GM said in a press release.

Shift reductions will be effective on the following dates:

• Flint Assembly (Heavy Duty Chevrolet Silverado and GMC Sierra) -- July 14

•Janesville (Chevrolet Tahoe and Suburban, GMC Yukon, Yukon XL) -- July 14

• Pontiac Assembly (Chevrolet Silverado, GMC Sierra) -- July 14

• Oshawa Truck (Chevrolet Silverado and GMC Sierra) -- Sept. 8

" With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities," said Troy Clarke, president of GM North America.

Clarke said that with the market shifting toward cars and crossovers, GM is seeing strong sales of the new Chevrolet Malibu, Cadillac CTS, Chevrolet Cobalt, Pontiac G6, Chevrolet Impala, Buick Enclave and GMC Acadia.

Clarke added that the company is continuing to explore options to increase car and crossover production.

Link: http://www.autonews.com/apps/pbcs.dll/arti...p;rssfeed=RSS31

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Does GM have anything else they can build in there factories?

I don't see what they would build... unless they need another plant for the Malibu. Most plants are under capacity as it is, anyways.

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Not feasible.

The market will have changed significantly by the time the lines could be changed over to another product.

They'd be chasing their tails.

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This gas $ environment must really be (or going to) hurt toyota bad, with a brand new, over-budget plant to pay off and an uncompetitive, no-hybrid/ no-diesel, defective truck trickling out the door....

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This gas $ environment must really be (or going to) hurt toyota bad, with a brand new, over-budget plant to pay off and an uncompetitive, no-hybrid/ no-diesel, defective truck trickling out the door....

Wishful thinking, my friend.

They have exactly 1 plant that is operating truly under-capacity.

GM has every plant but 1 or 2 operating that way.

Frightening times.

I'd love to know where you guys hide from outside information. It might be useful when I vacation... :rolleyes:

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Wishful thinking, my friend.

They have exactly 1 plant that is operating truly under-capacity.

GM has every plant but 1 or 2 operating that way.

Frightening times.

I'd love to know where you guys hide from outside information. It might be useful when I vacation... :rolleyes:

Apples and oranges (and decades of difference).

Trucks are the topic here, and Balthazar is right.

Toyota has a mess on their hands in the truck department.

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Apples and oranges (and decades of difference).

Trucks are the topic here, and Balthazar is right.

Toyota has a mess on their hands in the truck department.

Toyota's truck situation is, even at worst case scenario, a small drain of a huge bucket of cash.

GM hasn't made a profit in 25 years without large trucks.

Who's in worse shape because of trucks? It's not even a horse race, man.

Toyota will have a proportionate share of a smaller market--one that it has increased its presence in from Zero 25 years ago to 10% today. How is this some catastrophic failure? Every business has under-performing divisions or parts--has anyone here read a business page before? I'm just shocked.

Technically, large trucks aren't good anywhere. Ask Ford---scratch that, Ford figured out how to make a profit last Q--and GM's too busy................ giving RW a raise!

And, if the Tacoma survives the rust-thru debacle or not, it has effectively slaughtered the pathetic Colorado/Canyon twins & the Sienna pushed GM out of the minivan market entirely. My guess is GM could use another 350k or so of high transaction price volume right now, no?

C'mon. This argument doesn't pass the smell test, man.

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This is non news.

All companies will cut back truck production.

Toyota is getting an aveage of 55 days on the lot for many of their cars. The trucks and Scion are taking the biggest hits.This will not help Toyota but it will not kill them in the short term. As long as their small car line continue to sell and if they can come up with the next step plug in hybrid to compete with the Volt they will hang on.

We can continue to pray for them to stumble as quality is not what it once was precieved.

GM did not fall in one year and recover in two as goes Toyota.

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Toyota's truck situation is, even at worst case scenario, a small drain of a huge bucket of cash.

GM hasn't made a profit in 25 years without large trucks.

Who's in worse shape because of trucks? It's not even a horse race, man.

Toyota will have a proportionate share of a smaller market--one that it has increased its presence in from Zero 25 years ago to 10% today. How is this some catastrophic failure? Every business has under-performing divisions or parts--has anyone here read a business page before? I'm just shocked.

Technically, large trucks aren't good anywhere. Ask Ford---scratch that, Ford figured out how to make a profit last Q--and GM's too busy................ giving RW a raise!

And, if the Tacoma survives the rust-thru debacle or not, it has effectively slaughtered the pathetic Colorado/Canyon twins & the Sienna pushed GM out of the minivan market entirely. My guess is GM could use another 350k or so of high transaction price volume right now, no?

C'mon. This argument doesn't pass the smell test, man.

Still doesn't negate the fact that Toyota missed the mark BIG TIME (yet again)

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Still doesn't negate the fact that Toyota missed the mark BIG TIME (yet again)

Exactly.

The Tundra has been one misadventure after another, and now the environment has become tough for the established players let alone Toyota.

I'd have to say that the trucks (especially the Tundra) have to be the biggest blunder ever made by Toyota in our market. That, by itself, is of great significance.

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I'd venture a guess that we will be seeing a semi-permanent reduction in the full-size truck market by the time fuel prices finally stabilize. Toyota will be left holding a very expensive bag at that point. Ford and Chevy will trim back as needed, but this change is likely to tighten their grip on what remains of the market going forward.

But.

The compact truck market could be anyone's at this point. That's going to be an interesting arena to watch.

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The compact truck market could be anyone's at this point. That's going to be an interesting arena to watch.

GM should produce a high-quality, very well designed compact pickup that is a return to the formula followed by both generations of the S-Series pickup: tough as nails and dependable no matter if you have a two-wheel drive example or a four-wheel drive example, easily personalized, good handling for a small truck, and good fuel economy. Manual transmissions are a must, and a good four-cylinder engine should be prioritized this time around, one with very good low end grunt and torque that is readily available.

Granted, no generation of S-Series truck had an interior that you could write home about and were rough in places (squeaks and rattles were aplenty, about three notches above a British Leyland product).

There is no excuse for the GMT-355 trucks. They were maybe class-leading for a little under a year before other new pickups were introduced after them, and then they were easily surpassed in design and quality, and looked like a big joke. For the price of a well-equipped Canyon Z71, you could also buy a larger Sierra with a V8 that was almost just as well-equipped.

If GM has a MCE planned for GMT-355, all work for it should be brought to a halt, and the remaining money invested into bringing the NG GM compact pickup to market much sooner. When the market shifts to small trucks again, GM will find itself holding the bag if it continues to offer the GMT-355 trucks.

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GM should produce a high-quality, very well designed compact pickup that is a return to the formula followed by both generations of the S-Series pickup: tough as nails and dependable no matter if you have a two-wheel drive example or a four-wheel drive example, easily personalized, good handling for a small truck, and good fuel economy. Manual transmissions are a must, and a good four-cylinder engine should be prioritized this time around, one with very good low end grunt and torque that is readily available.

Granted, no generation of S-Series truck had an interior that you could write home about and were rough in places (squeaks and rattles were aplenty, about three notches above a British Leyland product).

There is no excuse for the GMT-355 trucks. They were maybe class-leading for a little under a year before other new pickups were introduced after them, and then they were easily surpassed in design and quality, and looked like a big joke. For the price of a well-equipped Canyon Z71, you could also buy a larger Sierra with a V8 that was almost just as well-equipped.

If GM has a MCE planned for GMT-355, all work for it should be brought to a halt, and the remaining money invested into bringing the NG GM compact pickup to market much sooner. When the market shifts to small trucks again, GM will find itself holding the bag if it continues to offer the GMT-355 trucks.

Agreed 100%

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Toyota's truck situation is, even at worst case scenario, a small drain of a huge bucket of cash.

GM hasn't made a profit in 25 years without large trucks.

Who's in worse shape because of trucks? It's not even a horse race, man.

Toyota will have a proportionate share of a smaller market--one that it has increased its presence in from Zero 25 years ago to 10% today. How is this some catastrophic failure? Every business has under-performing divisions or parts--has anyone here read a business page before? I'm just shocked.

Technically, large trucks aren't good anywhere. Ask Ford---scratch that, Ford figured out how to make a profit last Q--and GM's too busy................ giving RW a raise!

And, if the Tacoma survives the rust-thru debacle or not, it has effectively slaughtered the pathetic Colorado/Canyon twins & the Sienna pushed GM out of the minivan market entirely. My guess is GM could use another 350k or so of high transaction price volume right now, no?

C'mon. This argument doesn't pass the smell test, man.

Funny, that: the Uplander/SV6 are the #2 selling vans in Canada. The Caravan beat them out, of course. A Corvette customer I had today rolled in on a new Canyon. He loves the truck. Thrilled with the gas mileage. He's looking to trade his '96 Vette on a new one. He seemed to know a thing or two about vehicles.

You can find bad news if in everything if you want to. The under performing Tundra plant and the Tacoma rust problem are but leaks in the dyke. Added to the Avalon launch problems last year, the Prius computer problems, Tundra frame and tailgate issues - well, you get the picture: it eventually becomes a torrential downpour if left unchecked.

I am sure GM was pretty smug with the Cimaron and Oldsmobile diesel problems, too. Look where that got them.

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GM should produce a high-quality, very well designed compact pickup that is a return to the formula followed by both generations of the S-Series pickup: tough as nails and dependable no matter if you have a two-wheel drive example or a four-wheel drive example, easily personalized, good handling for a small truck, and good fuel economy. Manual transmissions are a must, and a good four-cylinder engine should be prioritized this time around, one with very good low end grunt and torque that is readily available.

Granted, no generation of S-Series truck had an interior that you could write home about and were rough in places (squeaks and rattles were aplenty, about three notches above a British Leyland product).

There is no excuse for the GMT-355 trucks. They were maybe class-leading for a little under a year before other new pickups were introduced after them, and then they were easily surpassed in design and quality, and looked like a big joke. For the price of a well-equipped Canyon Z71, you could also buy a larger Sierra with a V8 that was almost just as well-equipped.

If GM has a MCE planned for GMT-355, all work for it should be brought to a halt, and the remaining money invested into bringing the NG GM compact pickup to market much sooner. When the market shifts to small trucks again, GM will find itself holding the bag if it continues to offer the GMT-355 trucks.

Well, not quite. Don't forget, GM 'market prices' their vehicles. A Z71 Colorado is about $5k cheaper than a comparably equipped Silverado.

The point that has been made before is that $5 a gallon changes the landscape. GM may be catching hell from so-called enthusiasts for the 5 cylinder engine in the GMT-355s, but GM is very well positioned with these trucks when (not if) gas goes north of $5. BTW, we are already paying over $5 a U.S. gallon here.

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Well, not quite. Don't forget, GM 'market prices' their vehicles. A Z71 Colorado is about $5k cheaper than a comparably equipped Silverado.

Well, let me ask another question then: For how many people will that five-thousand dollar price difference keep them away from considering the larger, better-quality alternative, especially if they can afford such a difference?

The point that has been made before is that $5 a gallon changes the landscape. GM may be catching hell from so-called enthusiasts for the 5 cylinder engine in the GMT-355s, but GM is very well positioned with these trucks when (not if) gas goes north of $5. BTW, we are already paying over $5 a U.S. gallon here.

The GMT-355s are not a class-leading product and there are better options available from the likes of Nissan and Dodge/Mitsubishi. I know that I would not trade in my 1998 Sonoma for a 2008 Canyon. Mark my words, GM will be left holding the bag with the GMT-355 trucks if they are not replaced soon. There is very little incentive to buy one of those trucks over the competition's offerings (save for maybe the Ford Ranger).

Edited by YellowJacket894
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The GMT-355's stink no excuse, they stunk when they came out. The interior was already looking like it was 5 years old. I thought GM was working on a new world class small truck in South America?

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For the small trucks, I see it this way:

- Colorado/Canyon are way outclassed

- Ranger is dead

- Dakota is way too big

- Tacoma is way too big and has a horribly compromised rep now

- Nissan isn't much of a player with the Frontier

- Isuzu is gone

Looks like anyone's game to me.

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GM should produce a high-quality, very well designed compact pickup that is a return to the formula followed by both generations of the S-Series pickup: tough as nails and dependable no matter if you have a two-wheel drive example or a four-wheel drive example, easily personalized, good handling for a small truck, and good fuel economy. Manual transmissions are a must, and a good four-cylinder engine should be prioritized this time around, one with very good low end grunt and torque that is readily available.

Granted, no generation of S-Series truck had an interior that you could write home about and were rough in places (squeaks and rattles were aplenty, about three notches above a British Leyland product).

There is no excuse for the GMT-355 trucks. They were maybe class-leading for a little under a year before other new pickups were introduced after them, and then they were easily surpassed in design and quality, and looked like a big joke. For the price of a well-equipped Canyon Z71, you could also buy a larger Sierra with a V8 that was almost just as well-equipped.

If GM has a MCE planned for GMT-355, all work for it should be brought to a halt, and the remaining money invested into bringing the NG GM compact pickup to market much sooner. When the market shifts to small trucks again, GM will find itself holding the bag if it continues to offer the GMT-355 trucks.

Agreed. Affordable, solid trucks that are good on gas are needed now....

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For the small trucks, I see it this way:

- Colorado/Canyon are way outclassed

- Ranger is dead

- Dakota is way too big

- Tacoma is way too big and has a horribly compromised rep now

- Nissan isn't much of a player with the Frontier

- Isuzu is gone

Looks like anyone's game to me.

Interesting....2 of those trucks are gone next year.....one will have to disappear...leaving one that grow a bit....but has become quite pricey...

There is an open market here for the right product...

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Funny, that: the Uplander/SV6 are the #2 selling vans in Canada. The Caravan beat them out, of course. A Corvette customer I had today rolled in on a new Canyon. He loves the truck. Thrilled with the gas mileage. He's looking to trade his '96 Vette on a new one. He seemed to know a thing or two about vehicles.

You can find bad news if in everything if you want to. The under performing Tundra plant and the Tacoma rust problem are but leaks in the dyke. Added to the Avalon launch problems last year, the Prius computer problems, Tundra frame and tailgate issues - well, you get the picture: it eventually becomes a torrential downpour if left unchecked.

I am sure GM was pretty smug with the Cimaron and Oldsmobile diesel problems, too. Look where that got them.

No anecdotes, please.

Fearless prediction: Toyota will survive and prosper even with 'frontrunner' backlash.

As stated earlier--they've run GM out of the other truck biz' and the large truck nightmare has only begun for all parties.

All of you would select Toyota's competitive position if it was your business. GM is in real trouble with the softness in critical sectors.

Sour grapes, coulda-shoulda-woulda & bitter hopes that someone else needs to fail is simply not a business plan. Not with a competitor as relentless as Toyota.

Again, the denial or need to parse words just to pull a positive out of a true disaster is incredible.

Biz, I know you're a smart person--but you've got to take a real, careful look at what is really going on...this is nothing short of a catastrophe with a perfect storm of economic issues that may drive GM to the literal brink--Union issues, borrowing costs, mortgage exposures, housing woes--I mean, even I couldn't make up a worse case scenario.

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No anecdotes, please.

Fearless prediction: Toyota will survive and prosper even with 'frontrunner' backlash.

As stated earlier--they've run GM out of the other truck biz' and the large truck nightmare has only begun for all parties.

All of you would select Toyota's competitive position if it was your business. GM is in real trouble with the softness in critical sectors.

Sour grapes, coulda-shoulda-woulda & bitter hopes that someone else needs to fail is simply not a business plan. Not with a competitor as relentless as Toyota.

Again, the denial or need to parse words just to pull a positive out of a true disaster is incredible.

Biz, I know you're a smart person--but you've got to take a real, careful look at what is really going on...this is nothing short of a catastrophe with a perfect storm of economic issues that may drive GM to the literal brink--Union issues, borrowing costs, mortgage exposures, housing woes--I mean, even I couldn't make up a worse case scenario.

QFT

The mailbu, Cobalt, Aveo, G6, Astra and a few other cars are not going to be enought to hold things up....

While it is great that the trucks run on E85, it's simply not rolling out anywhere near fast enough to save sales...

Though if the predections the last few days for oil is right, pretty much alll the auto makers are going to be in trouble in NA.....

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