With all the talk being about crossovers lately, it’s not surprising to learn that GM has decided to cut production of full-size trucks and SUVs. This includes the Cadillac Escalade, ESV and EXT pickup. Between growing fuel costs, growing food costs as a result of ethanol and issues with the economy, the demand for these full-size vehicles is diminishing.
GM will be eliminating one production shift at its Janesville, Wisconsin; Oshawa, Ontario, Pontiac and Flint, Michigan plants – and anticipates an annual production reduction of about 88,000 full-size pickups and 50,000 SUVs. The list of vehicles this affects includes the Chevrolet Silverado, Avalanch, Tahoe and Suburban, GMC’s Sierra and Yukon, all the family of Cadillac Escalades. The cuts will be seen in Oshawa on September 8th and the remaining four plants as early as July 14th.
Is this the beginning of the end for full-size SUVs? Will the new supply and demand going to help resale value? Only time will tell…
Comments