Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production - Page 2

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Thread: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by BlackGTP View Post
    I never paid attention to Suburban/Tahoe pricing 30 years ago, any clue what it was like? Meaning was a maxed out 1990 Suburban priced the equivalent of $50k today.
    I price/crossed shopped an Avalanche on a couple of my many P/U-Truck purchases, like-for-like the Avalanche was always almost $10K more, it being basically a Suburban with a bed, but a P/U-Truck is basically a Suburban with leaf springs and a bed, never made sense for me, a better back-seat, that I didn't need at the time, with a smaller bed, which I often needed.

    I recall my uncle bought a Yukon SLT, I believe it was 1995 or 1996, going by memory sticker was mid-30's again an equivalent P/U-Truck at that time was about $10K less.


    Quote Originally Posted by GMOwner View Post
    Cheap for GM--not for you.

    The SUVs they mention are variants of the pickup truck line. There is very little in these trucks that require high-end engineering efforts (the largest cost structure of any product). Most if not all things in these vehicles are based off of technology from decades ago. Even the MyChevrolet thing in the middle is basically the same that exists in all other vehicles... Even the rear axle was a solid rear axle until this generation!

    In contrast there's a lot of engineering that goes behind making a fuel-efficient Equinox, XT4, etc.
    XT4 is based on a Malbiu Epi platform, Equinox is a "D" platform, not good comparisons.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by Ed753 View Post
    XT4 is based on a Malbiu Epi platform, Equinox is a "D" platform, not good comparisons.
    Pickups and large SUVs frame, RWD, and engine have essentially the same engineering since the 1970's--one could argue even farther back. The cost of that engineering has been spread out quite a number of years--one could even say it's been gravy for a very long time...
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by GMOwner View Post
    Pickups and large SUVs frame, RWD, and engine have essentially the same engineering since the 1970's--one could argue even farther back. The cost of that engineering has been spread out quite a number of years--one could even say it's been gravy for a very long time...
    What? How do you figure that? Just because it's the same type of layout doesnt mean that the engineering isnt different each generation.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by bballr4567 View Post
    A 1999 Tahoe 4 door 2WD was $29,920. 2020 dollars that's $46,298. Tahoe starts $10k over that mark. You can easily argue they've added $10,000 worth of stuff.

    A 1999 Tahoe 4 door 4WD was $32,250. 2020 dollars that's $49,903.
    Quote Originally Posted by Ed753 View Post
    I price/crossed shopped an Avalanche on a couple of my many P/U-Truck purchases, like-for-like the Avalanche was always almost $10K more, it being basically a Suburban with a bed, but a P/U-Truck is basically a Suburban with leaf springs and a bed, never made sense for me, a better back-seat, that I didn't need at the time, with a smaller bed, which I often needed.

    I recall my uncle bought a Yukon SLT, I believe it was 1995 or 1996, going by memory sticker was mid-30's again an equivalent P/U-Truck at that time was about $10K less.




    XT4 is based on a Malbiu Epi platform, Equinox is a "D" platform, not good comparisons.
    Amazing the price growth of these vehicles, the market seems to be bearing it. I still view these as "trucks" but they are really luxury vehicles....

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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by tripowergto Jan2003 View Post
    I'll bite... why is it the wrong time? Certainly they were due to be replaced and upgraded. They've always sold exceptionally well and GM absolutely OWNS this segment.
    Do you really think the economy and the American public are in a place right now where they can plop down 60-70k on a SUV in large enough numbers to support the rest of the GMs endeavors? They're going all in on large SUVs in the middle of a pandemic that has tanked the buying market. Not so much the wrong time if things were normal but the wrong time in the sense of where the world is. Just plain old bad luck on GMs part IMO.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by sdotjeezy View Post
    Do you really think the economy and the American public are in a place right now where they can plop down 60-70k on a SUV in large enough numbers to support the rest of the GMs endeavors? They're going all in on large SUVs in the middle of a pandemic that has tanked the buying market. Not so much the wrong time if things were normal but the wrong time in the sense of where the world is. Just plain old bad luck on GMs part IMO.
    I believe that those most affected by the pandemic couldn't afford these SUV's pre-Covid. Most of those that could afford them still can because they're savvy with their finances, risk assessment and are typically successful overall.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by tripowergto Jan2003 View Post
    I believe that those most affected by the pandemic couldn't afford these SUV's pre-Covid. Most of those that could afford them still can because they're savvy with their finances, risk assessment and are typically successful overall.
    I see your point...but I also witnessed firsthand when my company slashed 6 figure IT positions and outsourced their backfill. Now while some of those guys didn't drive Tahoes we all were in that bucket of potential buyers. This is relevant info because I don't think that my company was alone with moves like that...when stuff like that happens, those who remain on see how fast fortunes can change and become more inclined to stand pat...that staying pat means holding on to your 2015 fullsize until the world gets a little more certain.
    Last edited by sdotjeezy; 08-10-2020 at 01:52 PM.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by tripowergto Jan2003 View Post
    I believe that those most affected by the pandemic couldn't afford these SUV's pre-Covid. Most of those that could afford them still can because they're savvy with their finances, risk assessment and are typically successful overall.
    +1
    In the U.S. market, retail consumers seriously considering the purchase or lease of a 2021 GM T1XX SUV or truck are far wealthier than the average American. These are luxury vehicles, practically speaking.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by sdotjeezy View Post
    I see your point...but I also witnessed firsthand when my company slashed 6 figure IT positions and outsourced their backfill. Now while some of those guys didn't drive Tahoes we all were in that bucket of potential buyers.
    Tahoe/Suburban/Yukon/Escalade buyers are more likely to be business owners, executives, celebrities, or in licensed professions compared to the average new car consumer.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by sdotjeezy View Post
    I see your point...but I also witnessed firsthand when my company slashed 6 figure IT positions and outsourced their backfill. Now while some of those guys didn't drive Tahoes we all were in that bucket of potential buyers. This is relevant info because I don't think that my company was alone with moves like that...when stuff like that happens, those who remain on see how fast fortunes can change and become more inclined to stand pat...that staying pat means holding on to your 2015 fullsize until the world gets a little more certain.
    What would you want them to do though? The plant was upgraded last year and they started to roll out this spring. No way could GM figure this would happen. Can't just not make them and people are literally lining up to buy them at MSRP. Can't say the same for trucks.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by bballr4567 View Post
    What would you want them to do though? The plant was upgraded last year and they started to roll out this spring. No way could GM figure this would happen. Can't just not make them and people are literally lining up to buy them at MSRP. Can't say the same for trucks.
    My point wasn't really that they shouldn't be upgraded its just that this world economy isn't in place to support them...more really pointing out GMs bad luck than criticizing them being here. I hope they do well, they're the product of A+ effort.
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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by sdotjeezy View Post
    My point wasn't really that they shouldn't be upgraded its just that this world economy isn't in place to support them...more really pointing out GMs bad luck than criticizing them being here. I hope they do well, they're the product of A+ effort.
    But then once things smooth out these are already there and ready to rock and roll. Even in times like these there are still an amount of buyers who can still be able to swing these things, which may or may not have been an aside in GM's going forth with bringing these new ones out now.

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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by 1958carnut View Post
    But then once things smooth out these are already there and ready to rock and roll. Even in times like these there are still an amount of buyers who can still be able to swing these things, which may or may not have been an aside in GM's going forth with bringing these new ones out now.
    +1. And many of these are leased/traded-in so not like there is a huge cash infusion needed to upgrade.

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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by BlackGTP View Post
    I never paid attention to Suburban/Tahoe pricing 30 years ago, any clue what it was like? Meaning was a maxed out 1990 Suburban priced the equivalent of $50k today.
    In 1990 you could still order a base suburban with a manual trans or even vinyl seats for a work truck.

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    Re: Arlington To The Rescue! GM Plant Goes Full Tilt On New SUV Production

    Quote Originally Posted by bballr4567 View Post
    What? How do you figure that? Just because it's the same type of layout doesn't mean that the engineering isn't different each generation.
    Most of the time, one generation to the other is a form of evolution; not ground-up new models, that is the point. The GMT900 and K2XX use many of the same parts, or slightly different version of the same part(s).


    Quote Originally Posted by sdotjeezy View Post
    Do you really think the economy and the American public are in a place right now where they can plop down 60-70k on a SUV in large enough numbers to support the rest of the GMs endeavors? They're going all in on large SUVs in the middle of a pandemic that has tanked the buying market. Not so much the wrong time if things were normal but the wrong time in the sense of where the world is. Just plain old bad luck on GMs part IMO.
    Supply and Demand, if sales slow, they'll drop the price and/or reduce volume.

    I can't stomach the money these things cost, but lets not pretend the K2XX's were inexpensive............

    Luckily my wife doesn't want to drive anything that big, but with me, I can't get past the "destruction of wealth" Doesn't matter if it is an $800/month lease or 10's of thousands of depreciation, it happens pretty fast.


    Quote Originally Posted by gkr778 View Post
    +1
    In the U.S. market, retail consumers seriously considering the purchase or lease of a 2021 GM T1XX SUV or truck are far wealthier than the average American. These are luxury vehicles, practically speaking.

    Quote Originally Posted by gkr778 View Post
    Tahoe/Suburban/Yukon/Escalade buyers are more likely to be business owners, executives, celebrities, or in licensed professions compared to the average new car consumer.

    There are a lot of people that justify the expense, for all intents and purposes, they are "broke" they make a lot of money, but spent almost every dime.

    I have a neighbor, they do well, 2 small kids, and Escalade and a XT6, easily $1,000/month payment & insurance, (each) that is $25K after-tax dollars a year.

    At 30% tax rate (federal & state) that is ~$36K/year, gross.
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