GM cancels next-generation Escalade, Tahoe, Suburban, Yukon

It was pretty inevitable and now it’s confirmed that GM has canceled its CXX program – a program designed to develop the next-generation Chevrolet Tahoe and Suburban SUVs along with siblings GMC Yukon and Cadillac Escalade.

According to The New York Times, vice chairman Bob Lutz has confirmed that the next-generation of these products have been canceled. He said: “It would have been very difficult in today’s environment to spend a couple of billion dollars to do a replacement.”

The next-generation Tahoe/Suburban along with the Yukon and Escalade were set to arrive in 2011 as 2012 models. GM had originally planned to spend a total of $2 billion on completely redesigning the SUVs and retooling the plants that build them.

It is still unclear whether the current models will continue in production until 2011 or will be eventually phased out. It’s been previously reported that the Cadillac Escalade could move to the Lamda platform used for the GMC Acadia, Saturn Outlook, Chevrolet Traverse and the Buick Enclave.

Source: InsideLine