Peak Oil News: GM to boost output of its large SUVs

Wednesday, March 22, 2006

GM to boost output of its large SUVs


With the new Chevrolet Tahoe selling briskly, General Motors Corp. told workers at three assembly plants that it will increase production of its family of new full-size SUVs by about 11,000 to 12,000 a year, a GM spokesman said Tuesday.

Despite high gas prices, GM expects strong demand for its new large SUVs coming to market, including the new Cadillac Escalade, Chevrolet Suburban and GMC Yukon XL. They are among the company's most profitable vehicles.

GM will increase the number of large SUVs coming off the production lines at plants in Janesville, Wis., and Arlington, Texas, in June and at Silao, Mexico, in July, GM spokesman Dan Flores said.

Earlier this month, GM said it pulled ahead production of the Suburban and Yukon XL by two to three weeks.

Wall Street analysts expect the automaker to partly rebound from last year's losses of $10.6 billion with sales of large SUVs.


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