The SUV is Dead, R.I.P.

[1sttruck]

http://www.nytimes.com/2008/10/26/business/26jane.html?_r=1&oref=slogin

General Motors, Driven to the Brink

IN late May, senior executives at General Motors confronted a decision that few thought they would ever face: whether to continue developing the next generation of one of the most successful products in G.M.’s 100-year history — the full-size sport utility vehicle — or to punt the program entirely.

It’s rare for an automaker to pull the plug on high-profile initiatives, much less one involving a $2 billion, top-to-bottom overhaul of a high-volume vehicle that once helped it rake in cash.

This was also G.M.’s flagship platform, code-named CXX, which would underpin popular models like the Escalade, Yukon and Suburban, brawny tanks that had defined the auto giant’s image for more than 15 years.

The executives killed the CXX project without a single dissenting vote. And with that, the era of the big S.U.V. was as good as dead, done in by soaring gasoline prices and consumers fleeing to smaller, more fuel-efficient cars.

 

[tonycarguy]

US gas prices have declined significantly in the past month. Most places are under $3 and the lowest places in the country are under $2. If this continues, sales of larger vehicles will increase again. People didn't switch to hybrids because they suddenly started caring about the environment or geo-political factors.

 

[Gary Allan]

Chrysler did this in the late 70's. Just about abandoned selling V8's. I don't even think they had a V6 to offer until Mitsubishi engines were used. Now they went back to their bad behaviors and just about offered the worst line up of gas guzzlers that you could come up with.

 

[OVERKILL]

Ford is still producing the Escape (and it's hybrid version), the Explorer and Expedition.......

Toyota is making the Sequoia, Honda the Pilot and CR-V.....

So maybe it's just dead for GM.

 

[mpersell]

The GM plant here in Arlington is still pumping out Suburban and Tahoe based vehicles and Asia is buying up everyone that the US market won't buy.

 

[Mr Nice]

GM has one foot in the grave and the other foot balancing on a banana peel.

I hope they don't go out of business, but I have no idea how they can sell all those Trucks and SUV's sitting untouched at dealerships. Even with gas under $3 and big rebates, I doubt people will want to rush out and buy a truck or SUV.

Off Topic: have you ever watched the Michael Moore movie:
Roger & Me

If not, you should watch it, what happens in the movie is happening today to GM and its UAW employees.

 

[chet2]

i work for a supplier and if GM goes down, there will be 2 million jobs lost in this country...i couldnt afford a suv or the gas that goes in one...could never understand the appeal..i know the big 3 made big profits off them though...till now

 

[Shannow]

The Suburban never made it down here, even 'though GM tried their hardest.

See maybe 3 suburbans, 6 H-1s, and 3 H-2s in a year's worth of driving.

Nissan Patrols, Toyota Land Cruisers with modern direct injection diesels costing $70-80 grand almost litter the country.

Can't imagine a family of 7 needing anything more than they offer.

 

[GMBoy]

Originally Posted By: mpersell
The GM plant here in Arlington is still pumping out Suburban and Tahoe based vehicles and Asia is buying up everyone that the US market won't buy.


I'm with you - work there too. The whole month of Sept our production was nearly 65% exports and even now exports are averaging 40% of our build. So the SUV may be temporairly dead in the US, not in other parts of the world. An strangely enough - out days in the field have dropped to normal levels so we keep producing and are even going to max overtime in November thru December. An early post stated GM pulls the plug on the next generation SUV. You can't always believe what you read as full truth. GM is hurting now, so naturally we try to cut all costs possible. The next gen SUV is still being worked on but on a much smaller scale - if not the central office guys on that project would not be with us. Plus, the current model is only 3 model years old so there is plenty of time to catch up if the market changes.

 

[ThirdeYe]

The 36th street GM metal plant here is going to be closing soon as well. The plant made parts for SUVs. It was originally built in 1935.

 

[GMBoy]

Originally Posted By: ThirdeYe
The 36th street GM metal plant here is going to be closing soon as well. The plant made parts for SUVs. It was originally built in 1935.


Yes, that is true. GM is now just making SUV's in Texas. No more production in Mexico and Wisconsin. So by adjusting the production capacity, other plants providing parts are also hurt. This is why we are working so much more in Texas - we picked up volume.

 

[kaboom10]

We drive an SUV and a truck. Around here in metro detroit the SUV and pickup truck is alive and well. You see a few more hondas and toyotas than normal but that's about it.

 

[mstrjon32]

I don't know if the SUV is dead, I was just checking out a Mercury Mariner the other day; the Hybrid version gets 33/31. The gas version does 28 highway. If I'm ever in the market for a newer SUV it just might be first on my list.

My 10-year old Jeep Cherokee 4.0 still does 22 mpg in my usual driving and as high as 26 on the highway. And, you can actually take the Cherokee off road and not worry about ripping off any chrome trim.

What's dead is the massive behemoth SUV that was useless both off-road and on-road and only existed as a tribute to excess.

 

[wavinwayne]

I was just looking at a used '05 Range Rover the other day.

 

[MaximaGuy]

I cannot wait to see these behemoths off the roads..

Good sign of economic weakness putting some sense into folks minds (both manufacture and buyers heads).

These behemoths off the roads was long overdue, never made sense driving a Yukon/Expedition/Excursion class of dumbaaaaasss vehicles.

 

[kaboom10]

You should see the guys little car that hit me.

 

[demarpaint]

Originally Posted By: kaboom10
You should see the guys little car that hit me.


Funny you mention that, I was rear ended at a stop sign over the summer. Honda Civic meets E-150, it wasn't a pleasant experience for the Civic. I had a little chip on the step-up part of the bumper. She needed a hood, grill, bumper, radiator, and tow.

For larger families or people who tow, the SUV has its place, but that place is very limited. GM and Ford better learn a lesson this time around, they had a few other lessons in the past that they quickly forgot. Hopefully they survive to remember this lesson and learn from it!

As far as gas being under $3.00 I hope no one falls into that trap. OPEC cut production to be sure it gets back up near the $4 mark again....

Frank D

 

[H2GURU]

This is what happens when you have a lousy product line-up and cannot meet the market needs. Poor management at its finest. I meen really... could these idiots been MORE short-sighted? If they had a decent entry level and then a modest family car, a simple 8 month re-tool would fix 75% of their problem? It will be a tough sell to get these suburban mommies out of their tanks though, as they've gotten used to throwing their 4500# vehicles around town. Since these vehicles were introduced the demure female operators have grown quite a pair. I for one will be anxious to see them behaving once again! It's unfortunate for the plants' employees as new jobs in those areas will be very hard to come by.

 

[kaboom10]

You see some real messy hits here. My wife has a SUV that helps protect her good side from a hit. She gets hurt on her left side she's dead in the water. I take the great nephew to school 4 days a week and the F-150 protects us.

 

[Steve S]

What's dead is the massive behemoth SUV that was useless both off-road and on-road and only existed as a tribute to excess..
... as well as 72 month financing!!!