GM Bets the Farm on Yukon
A friend of mine was urging us to include the 2007 Yukon in our long term fleet. His reasons made an interesting statement about the future of GM. Here's what he had to say:
"GM has really bet the farm on the Yukon with billions of dollars on the line. With claims of better fuel economy, better interior and build quality, this car is supposed to be the poster child for what GM can do right. It seems that if consumers agree, GM will be on the right path. However, if consumers scoff at the size and fuel economy, it could really mean the end of GM (at least as we know it). It seems like Edmunds should see if the Tahoe is really something for the $70/barrel everyday oil reality, or if it is a dinosaur that expensive fossil fuels have made irrelevant."
Here is a link to our long term test fleet.
- Posted by
- Philip Reed February 3, 2006, 9:38 AM
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The large SUV party is over. GM is in real trouble.
I own GM Bonds, I'm very nervous:bet the farm on the Tahoe? Top management must be changed, these guys are stupid.
As long as there is a need/function/purpose for large pickups and SUVs, there will be a niche for them. We "need" a large vehicle for towing a 6800 lbs. travel trailer. The SUV is more versatile for our life style than a pickup.
I don't understand the reasoning behind the new Trailblazer SS with a 6 liter V8 and nearly 400 HP. This vehicle has too short a wheelbase for heavy towing and is too small for heavy hauling. So, when would that much engine be needed in this vehicle? If looking for performance, a more stable and aerodynamic sports car or sedan would get better mileage and out perform/maneuver any truck.
I wouldn't say that the large SUV "party" is over... it just might be that the large SUV will go back to what it has been doing since Chevy gave us the Suburban upteen years ago - hauling families and cargo that need it. I would like to see a Nissan Murano, or Subaru Outback - or heck even a Ford Escape haul 9 people, a horse trailer (or boat or whatever). This is what the Tahoe is meant for. Well - the Suburban more than the Tahoe. I would rather have the Burb. Sure there are Oddessys and Caravans that can haul 9 people, but it can't tow a trailer, and those 9 people won't fit with all their stuff and gear without a topper and the roof of the car. Soccer moms may go back to the Windstar (now the Freestar) and maybe the Tahoe will get back to being what it was meant for, but it will not be going away. GM is doing an excellant job of offering them in a new and redesigned chassis. They don't even cost a whole lot more, and may even be less expensive to drive with DOD available and a hybrid not far off (which isn't expected to add a whole lot to overall cost). They will be more affordable to drive, and still have all the capabilities we want them to have... which is to haul people and stuff! I for sure don't want to try and do that in an Oddessy - even if it does get better gas mileage.