- Jan 7, 2002
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DETROIT-- General Motors Corp. has begun producing a new lineup of full-size SUVs earlier than expected after saying last spring it would speed up the program to help restore profits and boost lagging sales.
The automaker started producing the 2007 Chevrolet Tahoe, GMC Yukon and Cadillac Escalade in the last week of November, one week ahead of an already accelerated timetable aimed to begin output five weeks early.
Gary White, GM vice president over full-size trucks, said the automaker was able to shave off the time after prototype testing was completed early. The SUV program further benefited from a new engineering approach that stresses the use of more common parts among GM vehicles, he said.
"Really, we did all the things we needed to do two years ago to be able to move faster at the end," White said in an interview Thursday.
The same efficiencies will let GM move up the launch of its redesigned full-size pickups -- the Chevrolet Silverado and GMC Sierra -- by three months to October 2006, he said.
GM Chairman Rick Wagoner decided to speed the SUVs to market earlier this year as part of his effort to resurrect the automaker's North American operations.
GM's North American automotive division lost $4.8 billion in the first nine months of 2005 amid falling sales, rising material costs and increased competition. But the large SUVs face challenges in a U.S. market is rife with smaller, more nimble and more fuel-efficient alternatives to traditional truck-based SUVs.
"Any expectation for those vehicles has to be somewhat muted," said Erich Merkle, industry analyst with IRN Inc. in Grand Rapids, who believes GM's large SUV sales will remain flat with the new entries.
While GM said the large SUV market is unlikely to reach around one million annual sales -- as it did at its 2002 peak, the company expects to remain the dominant player in the highly profitable segment.
To woo buyers, GM made a raft of improvements to the new SUVs, adding more upscale interiors, new safety features and revamped powertrains that improve fuel economy to an average 20 miles per gallon.http://www.detnews.com/apps/pbcs.dll/article?AID=/20051216/AUTO01/512160364/1148
The automaker started producing the 2007 Chevrolet Tahoe, GMC Yukon and Cadillac Escalade in the last week of November, one week ahead of an already accelerated timetable aimed to begin output five weeks early.
Gary White, GM vice president over full-size trucks, said the automaker was able to shave off the time after prototype testing was completed early. The SUV program further benefited from a new engineering approach that stresses the use of more common parts among GM vehicles, he said.
"Really, we did all the things we needed to do two years ago to be able to move faster at the end," White said in an interview Thursday.
The same efficiencies will let GM move up the launch of its redesigned full-size pickups -- the Chevrolet Silverado and GMC Sierra -- by three months to October 2006, he said.
GM Chairman Rick Wagoner decided to speed the SUVs to market earlier this year as part of his effort to resurrect the automaker's North American operations.
GM's North American automotive division lost $4.8 billion in the first nine months of 2005 amid falling sales, rising material costs and increased competition. But the large SUVs face challenges in a U.S. market is rife with smaller, more nimble and more fuel-efficient alternatives to traditional truck-based SUVs.
"Any expectation for those vehicles has to be somewhat muted," said Erich Merkle, industry analyst with IRN Inc. in Grand Rapids, who believes GM's large SUV sales will remain flat with the new entries.
While GM said the large SUV market is unlikely to reach around one million annual sales -- as it did at its 2002 peak, the company expects to remain the dominant player in the highly profitable segment.
To woo buyers, GM made a raft of improvements to the new SUVs, adding more upscale interiors, new safety features and revamped powertrains that improve fuel economy to an average 20 miles per gallon.http://www.detnews.com/apps/pbcs.dll/article?AID=/20051216/AUTO01/512160364/1148
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