Janesville-made SUVs plunge more than 70 percent
JANESVILLE As if General Motors' officials needed any more data, October sales of the full-size sport utility vehicles built in Janesville seem to confirm that the automaker doesn't need two plants to produce the big trucks.
GM said Monday that sales of vehicles built in Janesville and Arlington, Texas, plummeted in October.
For the month, Suburban sales were down 70.4 percent, while Tahoe sales were down 77.1 percent. Yukon XL deliveries for the month were down 72.4 percent, and Yukon sales dropped 76.2 percent.
On a calendar-year-to-date basis, Suburban sales are down 37.7 percent, while Tahoe deliveries are off 35.6 percent. Yukon XL sales have dropped by 46.2 percent, and Yukon sales are down 39.9 percent.
After cutting one shift of local production earlier this year, GM announced in June that it would cease production of SUVs in Janesville. The automaker since has said that production will end Dec. 23.
The Arlington plant will be the sole producer of the large SUVs.
Overall, GM's sales in October were 45 percent behind those of October 2007. Truck sales were down 51 percent while car sales dropped 34 percent.
"The market has been shrinking for three years, but in October we saw a dramatic decline for the industry and GM," GM Vice President Mark LaNeve said in a news release. "We are obviously disappointed in our results, which reflect a difficult comparison with a strong year-ago October performance."
LaNeve said GM and other automakers are being affected by the national credit crunch.
GM is launching today a no-haggle pricing program and cash-back offers.
"These are extraordinary times for the U.S. economy, for consumers and for an auto industry that is running at deep recessionary levels relative to 1999-2006," LaNeve said. "We are offering the highest quality and best value vehicles to customers in our history, along with great incentives. But we can't do it alone as GM or the auto industry. It will take a coordinated national effort to turn this economy around."
In addition to GM's poor October performance, Ford said its sales were down 30 percent.
The results released Monday—along with a 23 percent drop at Toyota and a 25 percent decline at Honda—are indications that sales for the industry as a whole might be the worst in 25 years.
Material from Janesville Gazette wire services was used in this story.

Nov 5, 2008 at 5:36 p.m.
Suggest removal
Jokester, That's right, we can't blame ol' George for the economy going in the dumps. You want examples, open your eyes and read the news. 8 years of running the ship and you say he had NOTHING to do with this???
Besides, your first post was alleging that I said the Government was directly responsible for all the auto industries problems. As I said, that is not what I said, and only by saying that the slumping economy is affecting sales can you somewhat say that this administration added to the auto industries problems. That is the whole industry, not just GM (not all factories are union). If people can't get loans then sales drop off. Sales drop off, people get laid off.
Nov 5, 2008 at 12:16 a.m.
Suggest removal
The 95 billion dollar automotive bailout should help keep the fatcats fed nicely while they swing their axes on U.S. manufacturing plants. They'll probably use the bailout money to build new plants in Mexico.
Nov 4, 2008 at 10:46 p.m.
Suggest removal
Buy Made in USA and we are all safe....just like I have been preaching since '85.
Nov 4, 2008 at 7:56 p.m.
Suggest removal
Ok Chad, please give me some examples that the current administration is responsible for the bad economy.
I guess you need things explained in great detail. Greed is a selfish act coveting something, wanting something really bad. The workers, UAW and GM all wanted something really bad. M-O-N-E-Y That spells money Chad.
Let me know if you are confused about anything else.
Nov 4, 2008 at 5:28 p.m.
Suggest removal
they are not talking about your Grammar and Grandpar, you silly redneck snarly!
Nov 4, 2008 at 5:25 p.m.
Suggest removal
Joker, I was saying this administration was responsible for the bad economy (oh yeah, that's right, we are not in a recession!;)), not GM's problems. Now the economy has had a bad effect on the whole auto industry. So if you want to follow the trail that far, then one could possibly say that part of GM's problem is the bad economy caused by bad management in Washington.
And what are you referring to the end of? The end of the auto business? The end of just Janesville's plant? There were huge concessions given to Janesville, but that didn't work out. Overall, both non union and union plants have had sales slowdowns, so please tell me what this greed thing you are talking about? You want greed , look at medical costs ! Don't see you complaining about the USA paying for higher prescriptions to help pay for drugs that are sold elsewhere for half the cost.
Nov 4, 2008 at 5:23 p.m.
Suggest removal
Spark, there is one reason a Suburban can't get great gas mileage... it's called the first rule of thermodynamics. The first law shows that energy (or matter) cannot be created from nothing.
To move a three ton SUV, you need a lot more engery than to move a 1.5 ton sedan... and even less energy to move a compact car. No technology is going to make moving a suburban as cheap as moving a mini-van or crossover. Hybrids, E85, and dod (displacement on demand) are just great inventions but it doesn't change the final result - full size SUVs are mostly wasteful for most people to own.
Nov 4, 2008 at 5:18 p.m.
Suggest removal
ctr1 will try harder on grammar
Nov 4, 2008 at 5 p.m.
Suggest removal
Just learning proper grammar would suffice.
Nov 4, 2008 at 4:40 p.m.
Suggest removal
GM and it's piss poor management and the UAW and it's workers are to blame, for not looking to the future and making a change.No more $27.00 an hour to make a gas hog, and to all the people who talked about how GM would not close and their jobs will be saved by the UAW guess what come december you are out of a job.O and MC'D looking pritty good for work you can still work on a line just not for $27.00 an hour.Or you can transfer to another plant and hope it will stay open.So to any one that will disagree with me i do not care.
Nov 4, 2008 at 4:35 p.m.
Suggest removal
Chad, agreed, but the workers and UAW should of realized long ago that the end was near unless major concessions were made. They did not want to stop the gravy train so they said and did nothing. They were living the high life and did not want this to stop.
Also, please give me a few examples on how Bush and Cheney are responsible for the auto industry being in the dumps. I am still scatching my head on that comment.
Nov 4, 2008 at 4:33 p.m.
Suggest removal
You guys cannot constantly blame the economy and Bush/Cheney for everything. GM was and is terribly managed. Yeah, the auto industry is in the dumps. Another reason for this is because the vehicles are ridiculously overpriced. With todays technology, there's no reason an SUV can't be build to exceed great gas mileage. There's more too all of this.
Nov 4, 2008 at 4:12 p.m.
Suggest removal
tim4me - blame all you want, but the workers and UAW do not decide what to build, when to build, how many to build, where to build and how much it costs. That is all GM management. For them to come in late to a market change, that is their fault.
UAW and workers help control quality, wages (and that is NOT such a big a factor on overall vehicle costs as some would have you believe), and absenteeism. That is about it.
Not as far as the SUV market, there still will be a need by some for them but the market will be smaller. It may grow only if they get more fuel efficient, maybe with a V6 in the Tahoe.
But Tom3205 is right. Our lousy economy supplied by Bush/Cheney (by the way, where have THEY been hiding lately? With Bin Laden???) is the reason the whole auto market is in the dumps.
Nov 4, 2008 at 3:19 p.m.
Suggest removal
Jimp. You need to pull your head out of your A** the SUV market is dead for ever. We are living in a new era. Green minded thinking. Using less of everything etc. I'm not sure what rock you have been living under, but the living green movement is here to stay. I also agree GM was killed by poor management and poor planning as with UAW GREED. May well managed companies survive
Nov 4, 2008 at 1:38 p.m.
Suggest removal
Tim, I agree it has been a combined effort that brought the downfall of GM. Workers, UAW and GM management are all to blame.
Nov 4, 2008 at 12:29 p.m.
Suggest removal
The SUV market is NOT coming back. It was fueled by the housing boom, as people thought they had disposable income when they were really borrowing against their house. Having been burned, people are not going to be greedy again for a long time.
Nov 4, 2008 at noon
Suggest removal
Only people create jobs. Only people deplete the inventory, causing companies to replenish the inventory, with employees. Companies do not DEPLETE INVENTORIES...PEOPLE DEPLETE INVENTORIES. If people have the money, they will buy..If they have to give too much to the BUSH/CHENY oil cartel, they CAN'T BUY IT. IT'S THAT SIMPLE.
Nov 4, 2008 at 11:48 a.m.
Suggest removal
Bankruptcy in the near future??? Look out retirees, they might want to dig into those pensions.
Nov 4, 2008 at 11:08 a.m.
Suggest removal
It's not the greed of just the big wig's in GM. Let's not forget the demands the union has made on them as well. It's been a combined effort as I see it.
Nov 4, 2008 at 10:25 a.m.
Suggest removal
I wish the management of GM, the UAW and the workers would of seen the writing on the wall and made adjustments on the production line. But too late. Everyone's greed was more powerful than vision and common sense.
Nov 4, 2008 at 10:21 a.m.
Suggest removal
GM went through this many times, in the 80's everyone said people want small cars and Janesville built small.
Well guess what, they didn't and I really have my doubts that the small car phenomena will last this time either.
GM made billions on SUV's and that is why all of the foreign manufacturers started building them. The sales will return with the economy over time.
Nov 4, 2008 at 9:57 a.m.
Suggest removal
The GM big wigs, dug their own grave.
Nov 4, 2008 at 9:46 a.m.
Suggest removal
I really hope that all the fat cats, who went away with huge packages, face some judgment at some time. They profited even as they put blinders on. Now, the GM VP they quote acts like there's no possibility of longterm planning. He's just reacting to what happens next month and acting as if no one predicted that huge trucks and SUVs would plummet when we had an economic downturn like this. The lack of longterm planning at GM and other US manufacturers is criminal, but who would expect any such longterm planning when they got huge benefit packages for short-term profits?
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.