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.
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.
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.
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.
I wonder if this is also a way to "prime the pump" for the FORD BRONCO competitor EX if the bronco IS Ranger based as it sounds like it is
a new Blazer?
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.
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.
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!
You realize the Transit has a low-roof option as well. The problems with the Express is that it doesn't offer many of the options that the Transit does including the raised roof. Not to mention it is older than me in engineering age...
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.
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.
I'm wondering if Ford's cutaway business has swamped GM, because I haven't seen a single Transit cutaway. The Transit may not be tough enough or the companies don't want to retool for a new chassis.
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.
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.
IMHO, GM should first look in house to build these vehicles instead of outsourcing them. The cutaways could have been built on the old Medium Duty line at Flint Truck.
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.
Good point. These are late 90's 'murican tech and suddenly there are these far more efficient options now.
I bet they could come up with something interesting on a 'crossover' front drive platform that could offer both front and all wheel drive options and use the space and weight much more efficiently.
Express cargo vans are in as high of demand amongst dealers as Colorado's. If we had 30 of each in stock, we'd run out of vans first. We do sell a lot to fleet companies, but they sell to businesses.
I was going to suggest this as well. The Camaro production is shutting down this month if it hasn't already.
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Related Threads
?
?
?
?
?
GM Inside News Forum
3.5M posts
83.8K members
Since 2003
A forum community dedicated to GM owners and enthusiasts. Come join the discussion about General Motors news, concepts, releases, classifieds, troubleshooting, maintenance, and more!