It's not just GM's sales that are hurting. My brother sells for Toyota. They have 65 Sequias are 40 Trucks in stock. All in overflow lots.

Big surprise!

In the world of $4.00/gallon gas (probably $5/gal by summer), not that many want a 3-ton vehicle that gets 10-12mpg in the city and maybe 17-18mpg on the highway.

Then why isn't Lexus cutting back production on the LX and the LS by similar percentages?

Because people who can afford those cars haven't been hit hard by the increased gas prices--yet. You just wait. Eventually, the luxury brands will see similar production declines. Expect $5.50/gallon for premium by year's end.

so, 140k trucks less.
What happened to the utility, all the stories why americans have lifestyles that NEED trucks?
I suppose it is not that they keep on driving the old truck.

Are the lifestyles indeed changing? There is hope...

See? Capitalism at work. Thats why you hippies should shut up and let the logics do their work.

$4/gal came to my world a few weeks ago...diesel running $4.19 (at least 5 minutes ago). I'm surprised things aren't worse than they already are. 80% of the 'stuff' I consume as a consumer comes off a semi truck...and they don't get any breaks at the pump, either.

Gee. It'd be nice if GM had some smaller, fuel-economic quality cars in their lineup. But who could have foreseen fuel prices rising like this? I mean, that's impossible!

As evidence, see that no car companies in the world are producing small cars! They are ALL producing huge, gas guzzling SUVS, right? They are all now cutting their workforces, because they have no production lines producing quality smaller car designs to shift employees too.

(End sarcasm)

The winds of higher fuel prices have been blowing since the '70s. They've been at hurricane force since the 90's. GM CHOSE to ignore them, lured by cheap profits, and now the GM companies, and their employees especially, are going to pay the price.

Curious how everyone wants to blame GM, Ford, etc. for there being so many 5000-6000lb vehicles on the road. Somebody had to buy those vehicles, GM and Ford just adjusted to the market. I can't blame them for taking profits for providing what the shortsighted consumers wanted to buy. Now they will have to adjust to the market again, just like they did in the late 70's with car and truck downsizing.

What's very troubling is that we are repeating history once again. We all knew that there would be another energy crisis, but for some reason we all drove our Suburbans and Expeditions right into the thick of it.

Individuals will buy what they need at that moment. In general, US citizens have had their heads in the sand regarding pressures on fuel prices.

However, GM, as a corporation, should have seen those pressures, and should have seen the future need for smaller, more fuel efficient cars, and gotten one or more prepped for the production pipeline for a day such as this.

Since they haven't, they are already behind the curve on this trend. By the time they get on the ball, their competitors will have had 5-10 YEARS to lock in the marketplace.

That is how GM has thrown away its market share.

I guess that's while GM has Dual Mode Hybrids and their small block diesel right around the conner. And look at that, they adjusted the Cobalt so it now leads in fuel economy in its class. 6 speeds are becoming standard across the line slowly. GM also trademarked a symbol and signed a contract with UAW to produce 8 speeds. The Gen V small blocks get displacement on demand and direct injection for better fuel economy. The 2.0L Turbo Ecotec is going to end up being an option in many of their larger cars now. Then there is the Chevy Volt. Nope, GM hasn't been pre-pairing for this at all.

Did they over estimate the market this year? Yes, but so did Ford, Dodge, and Toyota.

Oh, and before I get ripped about the turbo comment, I am sorry GM can make a 2.0L Turbo which gets 28 mpg on the highway, thanks to it's flat torque curve. The only other one is BMW with the 335i, but they use sequential twin turbos to get their torque curve flat.

Wasn't Lexus the first one out witht he 8 speed?

@ John

Yes, in the ls460.

So, to whomever complaining about Americans not needing SUVs: since when is everything that you buy a 'need'? If Americans can afford it and want something a bit better than they absolutely need, great! I am glad that we live in such a prosperous country that we all have more than we need if we try even a little bit.

Second, energy crisis, energy crisis, blah, blah, blah. What is a crisis to you any way? There was no energy crisis in the '70s, there was political manipulation of the global oil supply. There is no crisis now. Can you buy gasoline for your car? I can. Where's the crisis? So it costs a bit more, factor it into your budget. Where's the crisis? Eat out about half as often and you'll more than make up the difference. A crisis is when there is no more energy and there is plenty. Don't be such a drama-queen with the doom-and-gloom ENERGY CRISIS rhetoric.

So, GM is cutting back because slacking sales of SUVs and big trucks due to a weakening economy and rising prices. A few days ago we hear that Ford is increasing production capacity for the Focus. The marketplace changes and corporations adjust. Why the doom and gloom?

I sure hope prices on those trucks come down. I could use a new used truck. The new silverados look sweet! Finally GM got the interior design correct! Better yet, if I find a good price on a tundra, that'll be my first pick!

High gas prices does have some positive impacts. And yes, I only drive my truck for its intended purpose, its not a daily driver. Thats where the corolla comes in!

This should be no surprise to anyone. With the other article discussing Toyota's large inventories of large SUV/Trucks, the market is correcting itself. People are adjusting to higher prices by purchasing more efficient vehicles or holding off large purchases. Contractors, people who need to tow, etc will still purchase large trucks. The casual large truck buyer will hold off. All car companies try to predict trend approx. 4-5 years before a model introduction, with this case Toyota, GM, Dodge, Nissan have all been stung with misjudging the market.

Lexus has an 8 speed in their 4300 lb ls460. It gets 16 and 24.

Chevrolet has a 4 speed in their 4400 lb 1500 truck. It gets 15 and 20.

Given the aerodynamic and weight difference that's probably a dead heat.

Oh, and it costs 3 times as much. But it does have 3 more seats and a big L on the forehead, I mean hood.

Just get rid of the big SUV lineup altogether. Hardly anyone is buying big SUV's anymore.

@ uh huh

I hope you're kidding. Who compares an LS Lexus against a Truck?

@CCL

Someone who says people buy excess, heavy trucks or ridiculously over-contented cars, what's the difference?

I don't need to tow 19500 lbs and I don't need rear-seat heaters or adjustable rear-seat thigh supports. heck, most of the time I don't need rear seats.

I'm just saying that perception is why we are all yelling about trucks and not about bloated-ugly-dripping-with-useless-features luxury cars.

Oh, and I know a few people whose two cars are HD trucks and Qmobiles (One Lexus, one Cadillac) so the buyer isn't always different, either.

Serve them right for neglecting their small truck, that piece of crap Colorado. Same thing with Ford and its Ranger (I own one.) Why didn't they invest money in those smaller truck? How about developing a nice small diesel for those midsize trucks. Those damn full size trucks just kept getting bigger and bigger.

From April's archive:

"Production of GM's Lambda SUVs (Outlook, Acadia and Enclave) came to a halt when UAW hourly workers went on strike at GM's Lansing, Michigan plant.

Approximately 65 workers went on strike last night due to unsuccessful negotiations. “We’d been at the negotiating table with Alliance since May 29, 2007 and still did not have a fair and equitable offer,” UAW said.

The Lansing, Michigan plant makes the interior carpets for the Saturn Outlook, GMC Acadia and Buick Enclave, three of GM's hottest selling vehicles right now."
______________________________________________________

I wonder how that strike is going now?

Good, the less of those gas hogs on the road the better. My sympathy to the people who will lose their jobs.
It's a step towards making the roads safer for people who drive sensible vehicles.
Those gas hogs are ruining the enviroment, along with the value of the dollar.

to Bill O.

Could you explain to the class how this truck ruins the value of the dollar. I'm interested to read.