GM may switch to car-like production for large SUVs

Being under pressure to produce more fuel-efficient models, GM may be forced to change the way it’s been building SUVs for the past seven-decades. The General is now looking for ways to design a lighter replacement for its biggest SUVs without relying on a heavier pickup-truck frame.

While nothing is certain as of yet, engineers are looking to shift to a car-like construction in 2012 for successors to the Chevrolet Tahoe, GMC Yukon and Cadillac Escalade.

Also, due to the decline in SUV and pickup sales this year, GM may also cut annual production of the segments by 40 percent to 1 million vehicles.

GM’s sales of large SUVs fell 5.2 percent in 2007 while pickups dropped 2.4. In the first quarter of 2008 SUV sales were down 14 percent as compared to the same period a year ago.


Source: Bloomberg

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