GMC Envoy, Chevy TrailBlazer, Saab 9-7X Ending Run in December

We knew it was coming, we just didn’t know it would be in time for Christmas. GM is closing its Moraine, Ohio, assembly plant Dec. 23. That’s where the GMC Envoy, Chevy TrailBlazer and Saab 9-7X SUVs are produced. The plant was expected to close in early 2009, but this sad new reality facing 1,100 workers moves the date up to 2008.

GM had already accelerated the closing of this and other plants, initially scheduled for the summer of 2010. The recent consumer shift from SUVs and trucks to smaller cars has made a gigantic impact on every automaker’s SUV plans. However, these three SUVs specifically were aging models that were not due for upgrading.

The TrailBlazer and the Blazer before it have been around since 1983. It seems 25 years of the line were enough.

GM to close Ohio SUV factory Dec. 23 (Detroit News)

Comments

Question (to Dave T., I guess) - were these 3 vehicles the ones that made the huge debut on a new year browl/party back 3/4 or sthg years ago? I remember that there was like a huge event back then that promote some GM SUVs as the saviors of the company - well, we all know what's happened (and what were they thinking? During that time, the gas $ was already rising.)

You know, with so many layoffs and such - the ones that promised a turnaround - in WORDS - are stilling getting paid millions of $ even though the company is sinking faster than the Titanic.

AR,
I think you're thinking of the blitz for the new GMT900s the GMC Yukon, Chevy Tahoe and Escalade. That would be the 2006 Super Bowl
http://commercial-archive.com/node/127721

And if I remember correctly they also did a big deal around New Years eve that same year for the Tahoe.

I feel bad for the people who will lose their jobs. Why cant GM shift the plant to smaller cars? Yes these SUV's are crappy vehicles with horrible quality (I had one) but cant GM decide to build something else there and keep the workers?

Ah...thx Dave T. :)

But the answer points out an even worse problem]! (lol - it was on the even more gas guzzling Tahoe/Escalade!)

Mike, to answer ur question w/o all the mumble jumble, it's "no." Thanks to UAW, each car that the Union members make HAS to achieve certain profit margin, because it's that certain profit margin that allows UAW members to have excellent medical benefits, job banks support, high wages, etc. That's the reason why so many UAW plants have pushed back on building small cars; instead they continue to build SUVs (which eventually leads to the shut down of many plants). Each small car has at most $800-$1000 profit (think 10%). Usually, with all those bargainings and cash back, etc., car companies make a couple of hundred dollars or so on each small car - no way to support UAW's demand. If UAW "allows" many of the plants to build small cars, then they'll have to make concessions like wage cut, benefit cuts, etc. in order to let the members to work. Well, if you don't work - and get full paid and benefit, or if you work, but get less paid and less benefit - which one would you choose? Kinda like our federal/state welfare system, u c.

This also explains why so many small cars are built in Mexico, China, Thailand, etc - where labor wages are super low with no benefits.

U know, the European versions - usually built in Europe too - aren't cheap. These are luxury items, with heavy taxes being charged. The more expensive car prices of the vehicle can justify the more expensive labor force that they have. Here in the US, none can charge a premium on small cars because of our mentality - we won't pay over @$15K for a small car, no matter how expensive it is the car company has to charge to satisfy demand from UAW. 1 example? Saturn Astra. Sales never picked up from get-go due its high price (which GM now admits it's a mistake).