GM's redesigned full-size 2021 SUVs face delay over coronavirus

As General Motors works to conserve cash for the coronavirus pandemic, the automaker reportedly told suppliers that it is postponing development of several future vehicles. The situation may cause GM to delay the launch of the 2021 Cadillac Escalade, GMC Yukon, Chevrolet Tahoe and Chevrolet Suburban SUVs, which had been planned to roll out in April.

The original launch plan for the redesigned full-size SUVs, which are some of the most profitable vehicles produced by GM, had called for production of the current models to end at its plant in Arlington, Texas, this week. After a retooling process, the redesigned SUVs were slated to begin production late in the month of April.

In an email to suppliers viewed by Reuters and confirmed as authentic by GM, the automaker also said it was suspending development work on six future vehicle programs, including updates of the Chevrolet Equinox, GMC Terrain, Cadillac XT4, Bolt EV, Chevrolet Silverado and GMC Sierra. GM said preproduction work on those programs would be pushed back to calendar year 2021, with most of the updated vehicles scheduled to be launched as 2022 models.

According to the Detroit News, work has also been paused on the Chevy Camaro and a future version of the Corvette that has yet to be unveiled and wasn't planned for production during the 2020 calendar year.

Last week, the automaker told employees and suppliers it was delaying work on some future vehicles while pushing ahead with near-term models such as its redesigned full-size SUVs and the GMC Hummer EV, Cadillac Lyriq, Chevrolet Bolt EUV and Cruise Origin, as well as its new Ultium battery system.

A GM spokesman who spoke with Reuters reiterated on Monday what the automaker had said last week — that the situation with its U.S. plants was "fluid" and that the automaker would "continue to evaluate" whether and when to reopen those plants on a week-by-week basis, with "employee safety" guiding that decision.

GM said previously that it was closing most of its U.S. plants indefinitely.

In its Monday email, GM asked suppliers to stop work on all pre-production tooling and pre-production parts manufacturing, but also not to dispose of any tooling or materials.

GM told Reuters it had solicited volunteers from its workforce to finish the build-out of the current SUVs on a single shift in Arlington. In addition, GM is installing more safeguards in the plant to help protect workers, including thermal temperature scanning and additional personal protective equipment. That work is expected to be completed in a week.

Information from Reuters was used in this report.

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