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GM will do next-generation big SUVs

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GM will do next-generation big SUVs

Rick Kranz

Automotive News -- February 15, 2010 - 12:01 am ET

CHICAGO -- General Motors Co. is developing a next-generation Chevrolet Suburban and Cadillac Escalade. They and other full-sized SUVs will be on the road in about three years.

Just last summer, the future of those vehicles -- GM's big moneymakers when gasoline prices were low -- was in doubt. The automaker put development of those vehicles on hold as it dealt with Chapter 11 bankruptcy issues, the recession and potential buyers worried by unstable gasoline prices.

The models will continue to be on GM's rear-wheel-drive, full-sized truck platform rather than the Lambda large crossover platform, which GM reportedly had considered.

"The SUVs are aimed at people who need more than two rows, and they need capability," said Rick Spina, GM's global vehicle line executive for full-sized trucks. "They are very fond of their SUVs, and we will continue to serve them."

Sales of GM's full-sized SUVs have tumbled. The automaker sold 184,000 full-sized SUVs in the United States last year, down 25 percent from 2008. But a few years earlier, sales were much higher: In 2006, GM sold 410,778 full-sized SUVs.

"Sales are picking up, plus there aren't too many players in the game," said Spina, who was interviewed last week at the Chicago Auto Show.

GM exported 40,000 large SUVs last year, giving it another reason to develop the next generation.

"That is big export dollars and pretty good business," Spina said.

He said each GM brand that has a full-sized SUV -- Chevrolet, Cadillac and GMC -- will get next-generation vehicles.

Read more: http://www.autonews.com/article/20100215/OEM01/302159908/1113#ixzz0fc3YR2M7

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GM has market dominance in these, so it should devote resources to what are important cash cows. Profit from these has to be allocated to cars though, as that's where the future is.

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Excellent. Amazing how fickle people are when gasoline prices change!

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So another round of 15 mpg SUVs because GM knows it is the only thing they really make profit on. And to meet CAFE, pretty much every car or crossover under $30k will get a 4-cylinder. Funny how they blame CAFE when killing Zeta or the Ultra V8, or other performance cars, but it is no problem for the Suburban or Escalade.

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So another round of 15 mpg SUVs because GM knows it is the only thing they really make profit on. And to meet CAFE, pretty much every car or crossover under $30k will get a 4-cylinder. Funny how they blame CAFE when killing Zeta or the Ultra V8, or other performance cars, but it is no problem for the Suburban or Escalade.

There is CAFE for cars and there is CAFE for trucks. Two different standards to meet.

GM is also making a profit elsewhere again, otherwise they wouldn't be able to pay off their government loans in June like they've promised.

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this sin't surprising... with the 5.5L and the NG hybrid trans... duh. hopefully they keep the weight sane. :)

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There is CAFE for cars and there is CAFE for trucks. Two different standards to meet.

GM is also making a profit elsewhere again, otherwise they wouldn't be able to pay off their government loans in June like they've promised.

Where is the profit? In November they reported they lost $1.2 billion post bankruptcy. The Government is forgiving a lot of those loans, GM would never be able to pay it all back. They are still a money losing company, and it looks like they want to bet it all on SUVs again, a strategy that failed them badly in 2002-2005.

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Where is the profit? In November they reported they lost $1.2 billion post bankruptcy. The Government is forgiving a lot of those loans, GM would never be able to pay it all back. They are still a money losing company, and it looks like they want to bet it all on SUVs again, a strategy that failed them badly in 2002-2005.

That was for the first quarter post bankruptcy. You want GM to work financial miracles the same way you expect them to work physics miracles that even the Germans can't do.

GM just took the small-midsize crossover crown from Honda and Toyota. Traverse and Acadia combined outsold the entire Toyota SUV lineup minus the RAV-4. The Cruze, NG Malibu, Camaro, Orlando, new small Buick, the Regal, the ATS, the Aveo (which is better than the Fiesta IMO) all show that GM is not betting the farm on full size SUVs.

But still, I don't fault GM one bit for investing money in a segment they know they can make a profit in, where as with cars they have trouble even getting people in the door to look at them in the first place.

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GM isn't betting on SUVs being the cash cows they once were. To even think that is boldly stupid.

I still see the SWB full-size SUVs going away, though. Tahoe and Yukon will go; the Traverse will pick up the Tahoe badge and the Acadia replaces the Yukon. The Escalade ESV will become simply the Escalade. The Yukon XL will drop the XL moniker. The Suburban will remain as always.

If you will note, the tone of the article seems to hint that GM's full-size SUV offerings will be trimmed down.

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GM isn't betting on SUVs being the cash cows they once were. To even think that is boldly stupid.

I still see the SWB full-size SUVs going away, though. Tahoe and Yukon will go; the Traverse will pick up the Tahoe badge and the Acadia replaces the Yukon. The Escalade ESV will become simply the Escalade. The Yukon XL will drop the XL moniker. The Suburban will remain as always.

If you will note, the tone of the article seems to hint that GM's full-size SUV offerings will be trimmed down.

Depends on the sales #s, how do the Tahoe and Yukon compare to the Traverse and Acadia volume? I can't see the SWB Escalade going away, it far outsells the ESV, doesn't it?

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GM owns the large long SUV class and they need to keep them. The Suburban has been the main stay of the industry.

The smaller SUV's will die in due time.

I would watch the new unibody Ford and how well it does. That may be the new direction for all new smaller SUV's if they can remove the weight.

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GM isn't betting on SUVs being the cash cows they once were. To even think that is boldly stupid.

I still see the SWB full-size SUVs going away, though. Tahoe and Yukon will go; the Traverse will pick up the Tahoe badge and the Acadia replaces the Yukon. The Escalade ESV will become simply the Escalade. The Yukon XL will drop the XL moniker. The Suburban will remain as always.

If you will note, the tone of the article seems to hint that GM's full-size SUV offerings will be trimmed down.

Well, an Escalade that retails for 60K and is based on a Suburban is a big unit-margin items. Same thing on a smaller scale with the Yukon / Yukon XL Denali and the top-of-the-line Tahoes / Suburbans. So still very relevant as cash cows. GM is smart to update those, GM will be smarter if it invests the profits from these vehicles mostly into cars. IMHO.

Edited by ZL-1
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GM isn't betting on SUVs being the cash cows they once were. To even think that is boldly stupid.

I still see the SWB full-size SUVs going away, though. Tahoe and Yukon will go; the Traverse will pick up the Tahoe badge and the Acadia replaces the Yukon. The Escalade ESV will become simply the Escalade. The Yukon XL will drop the XL moniker. The Suburban will remain as always.

If you will note, the tone of the article seems to hint that GM's full-size SUV offerings will be trimmed down.

Agreed. Some people don't plan on getting small cars either, regardless of cost. So there is still a market for them.....

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So another round of 15 mpg SUVs because GM knows it is the only thing they really make profit on. And to meet CAFE, pretty much every car or crossover under $30k will get a 4-cylinder. Funny how they blame CAFE when killing Zeta or the Ultra V8, or other performance cars, but it is no problem for the Suburban or Escalade.

I have yet to get 15mpg in my 4wd Suburban, except when towing. So shut your hole - crap is spewing out again.

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suburban is a GM icon, and it makes profit. to get rid of them is akin to new coke. porsche and a 911. Toyota and a corolla.

i would even keep the tahoe.

the thing gm needs to do is fix the rear suspension to return seating and cargo room to the rear of the vehicle.

GM doesn't need to sell these in huge numbers, but they need to keep them in the market. many folks need these vehicles for towing and long trips with many people etc.

IMO what the full size trucks and SUV's miss on GM is DIESEL. GM should use these models and the allocation on the trucks to bring back the 4.5 diesel and get it to market for those that want it.

Hybrids already for these models so IMO those should continue as well. Set and define a level of production each year to amortize and develop that technology.

Edited by regfootball
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Wow 3 years is long ways away! What are they going to do in the meantime to keep these relevant? They can't keep justifying the high prices these vehicles command for another 3 years.

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Wow 3 years is long ways away! What are they going to do in the meantime to keep these relevant? They can't keep justifying the high prices these vehicles command for another 3 years.

The suburban/tahoe was redesigned in what, '07? A 6 year span on a truck design is nothing.

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I don't know, they did fine for many years without the Tahoe/SWB Yukon. Keeping the bigger models would steer customers who didn't need something so huge into the Lambda trucks. This still gives 5 models; Suburban, Yukon XL, Escalade, Avalanche, and Escalade ESV. Coupled with the pickups they don't have to spend a bucketful of development monies.

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These are the quintessential American truck. To do away with them would be akin to forcing a Texan to give up everything, move to Paris and ride a bicycle. Unthinkable.

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These are the quintessential American truck. To do away with them would be akin to forcing a Texan to give up everything, move to Paris and ride a bicycle. Unthinkable.

+1

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