GM pulls plug on '08 line of cars

[pupp1]

GM pulls plug on '08 line of cars
Product czar Bob Lutz wants to speed new trucks, SUVs to market faster

DETROIT -- General Motors Corp. has killed plans for a new line of rear-wheel drive passenger cars slated to reach North American showrooms in 2008, in large part to free up resources to bring its next generation of large pickups and sport utility vehicles to market quicker.

The news comes after GM reassured investors, suppliers and Wall Street analysts last week that future car and truck programs would remain on schedule despite a new cost-cutting effort.

The automaker is under severe pressure to streamline after announcing last week its 2005 earnings would fall as much as 80 percent below previous estimates.

"While work on particular North American applications of our premium rear-wheel drive midsize vehicle architecture have indeed been stopped, we have begun to study new approaches to efficiently capitalize on future opportunities we see for future midsize rear-wheel drive applications," Marc Beckers, a spokesman for GM, said.

The rear-drive "global architecture" -- dubbed Zeta -- was to provide the basic underpinnings for an array of cars and crossover vehicles for markets around the world. It will continue to be the basis for products sold in regions outside North America.

GM's decision to kill the Zeta program puts the brakes on development of the next generation Pontiac GTO sports car, and new entries for Chevrolet, Buick and Pontiac. The current GTO is already being produced by GM's Holden unit in Australia. FULL STORY

[[Corporal Dan]]

Disgusting.

[dav305z]

"Begun to study"
This statement captures GM's main problem. While they are getting around to studying things, Ford is building 4,000 Mustangs a week, Chrysler is cleaning up on their new offerings, and Toyota is edging closer and closer to taking the #1 spot.

Earth to GM: Stop "studying" and start DOING.

[SonicAerio]

Shows how smart GM is..... with the rising gas prices: "lets pull all our resources for cars and make better SUVs, people will love them" I swear, GM is stuck in a time warp that is 5 years off of present time. Next thing you'll see is when more hybrids come out:"lets try and produce fuel efficient quality built cars" When fusion cars are created: "I think now is the time to start producing hybrids, there is deffinatly a market for it"

I'm not a huge GM fan, and it even sickens me to see what they are doing, so I can only guess how you true blue GM fans feel. Who the heck does GM have at top? Must all be working for other companies trying to destroy them, I think all GM fans should set up a day and strike at dealerships and headquarters untill they start listening to their fans and not what CU or dumba** board trustee members say.

[Mike The Canadian]

the velite....is dead. RIP

[nailhead425]

To Bob Lutz, et. al:

WTF?!

[mgescuro]

Well... Lutz is the one who championed Zeta. I'm sure he put up a fight for it. But reality and business sense had finally come to a head.

Seeing as Zeta could never have been brought down to a price range of the Mustang or 300C.... then what is the point at this point, as GM needs to stabilize it's business?? Seriously... would ALL of you be happy if Camaro entered at the $30K range and proceeded to bomb because it's more expensive than the mustang?? Would ALL of you be happy if the new Impala came out priced at $35K for the base?? NO!!! NOne of us would.

People. It's not like Zeta is gone forever. Holden will continue it's development. If Zeta doesn't arrive in the US until 2009 or 2010. Then that's the way it goes.

Roll with the punches, I say.

[Bhodie]

i can still buy my zeta holden......but that's looking pretty depressing for you guys....what next, they'll stop sending your sweet engines over to us!

[FightingChance]

I'd rather keep Zeta and kill the Tahoe, keeping only the Trailblazer and new Suburban platforms, nothing else.

[1BadPig]

this is worse than Porsche saying they'll stop racing to concentrate funds to develop the pepperwagon.

[jfnz24]

Pardon my language, but F U Lutz!

[Rex Raider]

This already has several threads.

[giagastormer]

Originally Posted by jfnz24

Pardon my language, but F U Lutz!

He's doing what's best for GM. I'm glad to see more money is going into the development of GM's real money makers - fullsize SUV's. The GMT-800 is the best selling platform in the world, GM should take its replacement, the GMT-900, very seriously.

[pkd87]

The most stupid move GM has done. Chrysler's 300, magnum are welling well (soon charger will too) and gas gas prices are rising and GM rills the Zeta platform in favor of speeding trucks to market. SAD SAD SAD. While the trucks need updating killing the ZETA is not the answer. GM you deserve to be in the shape you're are in.

[zabolots]

Their decisions lately are really scary. It seems like they're betting the farm on the GMT900 at a time when big SUV sales across the board are dropping. Granted, the fact that GM's current offerings are outdated isn't helping the situation, but by the time they're ready the market may very well be near completely gone. Just 'cuz they made a boatload of $$ off SUV's in the past doesn't mean they can do it forever. I think the huge gamble on GMT900 is REALLY gonna hurt GM in the near future.