General Motors has cancelled next week’s launch of the CTS Coupe at the LA Motor Show as part of a dramatic rethink of future products in the face of the company’s growing cash crisis.
The company has also postponed the launch of major new European models, including the new Saab 9-5 and the Vauxhall Meriva until 2010.
>> See more pictures of the Cadillac CTS Coupe
>> Read more on the GM crisis: buy, hold and sell
The CTS Coupe, which is production ready, has been delayed as GM desperately tries to cut costs to avoid running out of cash. The company is trying to conserve the reserves it needs to finish and launch high volume products like the next Astra. “It’s must-haves versus nice-to-haves,” a senior GM source told Autocar.
Previewed by the CTS Coupe concept at January’s Detroit motor show, the production car was seen as a vital part of building a more comprehensive Cadillac range that could take on BMW and Mercedes.
It would have always been a relatively low-volume seller, however, and delaying the car’s launch will not significantly harm Cadillac’s finances.
The Saab and Meriva have been delayed due to the costs involved with the final engineering programme. “To Saab the 9-5 is as important as the Astra is to Vauxhall. Saab needs the 9-5, but it’s more complex and costly to finish than the Astra.”
High launch costs for cars such as the Astra have also influenced the decision to postpone the smaller-selling cars.
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Re: GM in crisis
One thing I've often wondered - how many cars in this Country are sat there without owners? In other words, take all the cars in storage on airfields, waiting for auction and all those stuck on Dealers' forecourts. There must be a few million. A guy I know runs a car transporter business and he told me it was cheaper for the big Manufacturers to pay him to take cars from auction house to auction house after the month they are allowed to keep them there rather than pay for storage. He's got a big fleet...
Re: GM in crisis
SAAB 9-5 delayed again...! This will surely be the oldest (mainstream) car still on sale now the KA has been replaced. The difference is that the 9-5 was never a class-leader.
I agree, cant see how much longer SAAB can last. GM has Caddy as its luxury arm. With their current cash crisis a reduction in the amount of brands they have must be on the cards.
Re: GM in crisis
It would be a pity to see SAAB disappear but if GM don't allow the introduction of new models soon, sales will surely drop to such low levels that the demise will become inevitable. I cannot help thinking that manufacturers have just been producing too many cars for too many years; nice though it may be to have such a plethora of shiny new models arriving in our nearest showrooms almost every month, is it really necessay ? And why built cars that have not actually been ordered by a customer ? We've all seen pictures of fields full of unsold cars, this cannot make good sense. I am not saying that we should stop any new innovations coming to market (after all, I've been driving a Prius for the last four years), but I do think we need to radically re-think how the car market works in general. It will be particularly interesting to see how Gordon Murray's new ideas pan out, the industry surely needs more radical thinking like his, good luck to him.