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General Motors has informed its dealers that production of some of its 2008 full-size trucks and SUVs has been halted due to the ongoing American Axle strike. The affected vehicles include the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. According to the General, a basic lack of parts is the reason for the stoppage and dealer orders for the week of May 8th and May 15th have been cancelled. While a lack of production is bad news for any automaker, we can’t help but think that it couldn’t have come at a better time for the General as SUV and truck sales are down overall.

[Source: Automotive News – sub. req’d]

Word just came in from General Motors that the automaker will be reducing shifts at four different plants that produce its full-size trucks and SUVs in an effort to bring production “in line with market demand”. The output slowdown will begin on July 14th at GM’s Flint, Janesville and Pontiac assembly plants, which produce the Chevy Heavy-Duty Silverado, Tahoe, Suburban, Silverado and GMC Yukon, Yukon XL and Sierra. The Oshawa truck plant will also be affected starting Sept. 8th. All told, the shift reductions will nix 80,000 full-size pickups and 50,000 full-size SUVs from GM’s North American production capacity.

According to GM, both vehicles have lost ground in the market across the industry, with sales of full-size pickups dropping 15-percent and SUVs down 26-percent for the first quarter of 2008. This isn’t surprising considering the cost of fuel right now and the subsequent reduced demand for larger vehicles. GM didn’t provide specifics about how this would affect workers, only saying that it will “result in lower staffing requirements at all four plants,” and that the details “would be worked out over the next several weeks with the UAW and CAW.”

Naturally, GM felt the need to brighten up the lackluster announcement by highlighting that car and CUV sales are up. However, it hasn’t made a decision to boost output of either type of vehicle in lieu of said increased demand. Check out GM’s full press release after the jump.

[Source: GM, Photo by Scott Olson/Getty]

Thinking of trading your gas-guzzling SUV in for something smaller, a bit more fuel efficient? You are not alone. The rocketing cost of gasoline, and diesel fuel, is having a ripple effect on the SUV market. With consumers trading in their behemoths by the thousands in exchange for more frugal transportation, dealers are stuck with a surplus of unwanted sport-utes sitting on their lots with values dissolving.

Diesel-burning trucks aren’t immune either. As diesel fuel costs hovering about fifty cents per-gallon above gasoline, some of the bigger oil-burning SUVs and trucks are losing measurable resale by the day. Overall, according to CNW Marketing Research, used SUV sales were down 14% in March alone. With any surplus, come big discounts. It may be a ghastly time to fill a 30-gallon tank on an SUV, but it is the perfect time to negotiate with a dealer for that seven-passenger family truckster you’ve been fancying. No need to hurry — there will be an even better selection tomorrow.

Thanks to Jim for the tip!
[Source: U.S. News and World Report]

Thankfully we can officially report that the humongously ugly rendering of a GT-R based SUV, which appeared in Best Car’s early February edition, has no basis in reality. Reliable sources, both at Nissan’s HQ in Tokyo and at the company’s development center in Zama, who typically answer questions with non-committal “can neither confirm nor deny” statements, were adamant that no such project exists.

With the GT-R snatching the Porsche 911’s crowns left, right and center, and the upcoming new hardcore Z rumoured to be a Cayman eater, Porsche can relax in the knowledge that the Cayenne, at least, is safe for now.
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Jim Press thinks that there’s an emerging market for small, fuel efficient trucks. You know, the kind of trucks his former employer, Toyota, used to build. Press put in 37 years at Toyota, and he saw the evolution of the HiLux into the Tacoma, which is no longer the diminutive hauler it once was. Press owns a second home in Thailand, and observing how trucks are used in that country leads him to believe that there’s a worldwide need for a small, versatile pickup. Dodge’s Dakota saw its sales drop by one third between 2006 and 2007, and Press thinks that’s likely due to buyers shifting to crossovers.

There’s not a whole lot of incentive to buy a midsize truck right now – they cost nearly the same as an entry level full sizer, the mileage is only marginally better, and the size differential isn’t that great. We can recall two Dodge concept pickups of the recent past that we think buyers who miss the small pickup market might take a liking to. First, there’s the 2006 Dodge Rampage Concept, which packed a lot of utility in a small footprint. Then there’s the 2002 Dodge M80 Concept, one of the few Chrysler concepts that got a great reception but wasn’t produced. Put the M80 into production on a unibody platform with some unique powertrain options, Jim. Trust us, you won’t be sorry.

[Source: PickupTruck.com]

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Brenda Priddy & Co have brought us the first glimpse of GM’s upcoming 7-seat MPV. Based on the Delta global platform, it is said to be about the same size as the Mazda5. The person hauler is apparently the work of GM Daewoo (GMDAT), with R&D work carried out in Bupyeong, South Korea.

The vehicle will be offered for numerous GM brands around the world, though no one knows yet exactly which ones will get it. Chevy is certain, with Daewoo and Opel posed as logical outlets. Priddy guesses that this could even be the replacement for the Opel Zafira. It will most likely be built in the Hamtramck, Michigan plant. True, it’s only a taped-up mule and there are parts missing – like the front end – but we hope GM doesn’t go to far down the bland route in order to appeal to the widest number of global villagers.

[Source: Winding Road]