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Cargo Van Production May Be Subcontracted Thanks to Strong Colorado/Canyon Sales

9K views 77 replies 44 participants last post by  unkillsam 
#1 ·
GM may contract out van production to boost capacity for pickups
Mike Colias/Automotive News
November 24, 2015



General Motors is in talks to offload some of its commercial van production to contract manufacturer AM General, a move that would free up capacity at GM’s plant near St. Louis to make more of its hot-selling midsize pickups.

In a note circulated to workers at GM’s Wentzville, Mo., plant on Monday, plant officials said the company is “studying a partnership” with Indiana-based AM General to begin production of cutaway models of the Chevrolet Express and GMC Savana cargo vans built there.
The strong demand for the Colorado and Canyon has surprised analysts. GM is on pace to sell nearly 120,000 of the pickups this year compared with industry forecasts of around 80,000.

The pickups have been among the industry’s fastest-selling vehicles this year. The Colorados were selling in an average of 24 days last month, a GM spokesman said. The Canyon’s turn rate was 37 days.
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#2 ·
The strong demand for the Colorado and Canyon has surprised analysts. GM is on pace to sell nearly 120,000 of the pickups this year compared with industry forecasts of around 80,000.
I think this is what is called a "Good Problem".
 
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#10 ·
No being capacity constrained to the point of not being able to make your own vehicles because you shut down too many plants is a huge problem.
 
#4 ·
If it's good enough for Mercedes Benz, It's good enough for GM.

Frankly, I didn't think Mercedes built the R Class anymore. I know it's been a Big Ol' flop in the US.
 
#5 ·
GM is falling hopelessly behind in commercial vehicles. With the popularity of European style cargo vans in United States, there is absolutely no excuse why GM is still in a JV footing for these markets. They could probably manufacture for US and Europe in a NAFTA location, but unfortunately car guy and product development guru Reuss is too focused on Camaros, Corvettes and CTS V's to see his blind spots.
 
#63 ·
Good Points

Never could figure out why GM was not building at least one "new design" commercial van in Mexico, Korea or Eastern Europe, the Ford Transit Connect proved the small "Tall Van" was popular enough for GM to make the current (Fiat) Combo as a "All GM" design based on Delta as well as a new Express/Savanna on a "all GM" platform.

If GM insists on doing JV's it should at least be the original designer who can sell where ever/however they want.
 
#12 ·
I'm under the impression it would be the Wrangler competitor they showed dealers not too long ago.

No, Reuss understands commercial. He was a driving force behind the return to medium duty. There is still a strong market for the traditional style domestic van, and I see GM exploiting it for the time being. There may very well be a European style van in GM's future.
Again, I'm under the impression that the City Express might be an interim solution until they can do their own?

O thank god...Now Ed can sleep easy.
Dead.
 
#48 ·
So does this mean you finally acknowledge that there is a problem?


"In a note circulated to workers at GM’s Wentzville, Mo., plant on Monday, plant officials said the company is “studying a partnership” with Indiana-based AM General to begin production of cutaway models of the Chevrolet Express and GMC Savana cargo vans built there."


So we should have a decision in what; 2, 3, 4 years, and then another 9 - 18 months to tool up?


Yes, boyz & girlz at GM "a study" does solve everything!
 
#9 ·
Why didn't they just reopen Janesville if their so "comitted" to commercial vehicles? I will believe it when I see it.

This news is almost as bad as GM having Nissan build their small vans.
 
#14 ·
Why didn't they just reopen Janesville if their so "comitted" to commercial vehicles? I will believe it when I see it.
Cheaper to have somebody else build their stuff than re-open a dead plant.

I'm assuming Spartan Motors in Michigan will take over production of the Express/Savana just like they build the Isuzu/Chevy gasoline powered COE's.
 
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#18 ·
i hope they keep making the Express. its the last of its kind. there are some benifits of the low design, such as entering parking garages
 
#21 ·
I don't understand GM basically abandoning the commercial van market. That is what it is when they are talking of outsourcing an already outdated van. Ford's newest commercial van is very good looking and has many different variations to take care of most customer's needs. GM needs to get in the market or get out of it altogether.
 
#24 ·
This calls into some question the notion of 'flex' carmaking which has been all the rage.

What happens when one of the flex cars gets flexed right out the door.

As much as they talk a good game about niche cars, what really makes $$$$ for a mass produced steel car is a whole lot more 'mass' -

Explains why GM always keeps on making cars like W body Impala after they've been replaced by something better.
 
#52 ·
I've already done that. :D



The NV is a good, not great solution. It's a huge gas hogs and because it's on a pickup chassis the long hood area cuts into cargo space. Turning radius is bad too.
What?!? The hood actually helps with front seat passenger space, but doesn't hurt cargo space at all.
 
#29 ·
About the only think the GM full size vans have going for them is they are the only vehicle left on the market with more than 2 rows of seats that has adequate payload AND towing capacity for hauling descent sized travel trailer for a larger family. Ford's van has lots of payload but little towing capacity. Same with the Ram and Mercedes. A Suburban (1/2 ton only now, no 3/4 ton available) can haul many travel trailers but would be out of payload if you towed the trailer and brought the family along. I'm talking about families that actually NEED 3 rows of seats due to 4 or more children.

This doesn't mean that someone couldn't come out with a modern van with good payload, great towing capacity, and have all the latest conveniences and safety features of the modern vans. The GM vans are definitely lacking in the features and safety front. Rear passengers don't even have a head restraint.

The RV forum I frequently visit has lots of people using GM full size vans now or used Ford vans. They both have become more popular as 3/4 ton Suburbans are getting rare, even on the used market, and Excursions haven't been made in many years.

Glad they are finding a solution to the lack of production volume anyways.
 
#33 ·
The NV is a good, not great solution. It's a huge gas hogs and because it's on a pickup chassis the long hood area cuts into cargo space. Turning radius is bad too.
 
#35 ·
It would seem like GM has enough empty plants laying around to be able to keep it in house.

Interesting that 3 shifts and weekends don't yield enough labor to keep up with vehicle demand
 
#36 ·
This makes complete since. Why put another plant online and then have to close in a couple of years when the market cools down or higher gas prices. There is nothing wrong with using contractors to build your vehicles if they have capability to do it. Its a win win for both.
The current express van may not have all the new gadgets but it still sells well. For one its reliable, its easy to repair if something breaks down. A commercial van does not need all the bells and whistles like new vehicles. Owners want their people to work and make money for the company and have a reliable vehicle. Not only that there are so many accessories in the market for these vehicles. Even though they are big there gas mileage is not terrible.

Glad some of you on here don't run GM, you sound like old Gm and wasting money and not looking at the future. There keeping the cars up and working on improving the CUV line. GAS is not going to be cheap forever.
 
#38 ·
The 6.0 Vortec sucks it's fair share of gas but all things considered the 4.8 especially with the 2010+ that gained the 6-speed auto isn't so bad.

I average 16 mpg in mixed driving.
 
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