On Monday, March 30, 2020, General Motors Co. (GM) issued notice to its component suppliers saying that the company has decided to suspend the production of at least half a dozen of its new models to restore cash during the coronavirus pandemic.
The US automobile company based in Detroit, Michigan, GM also suggested that it would delay the launch of its highly profitable large sport utility vehicles (SUV) which was set to begin in late April.
Suspension of Productions
According to Reuters, that viewed the email exchange between the company and suppliers, GM would cancel the development and production of its six future vehicle models including updates of the Chevrolet Equinox, GMC Terrain, Cadillac XT4, Bolt EV, Chevrolet Silverado, and GMC Sierra. GM said the preproduction of these programs would be postponed till 2021 with an aim to launch the vehicles as 2022 models.
The email also mentioned the company’s decision on delaying the launch of its redesigned 2021 SUVs, which are among GM’s most profitable vehicles, including Cadillac Escalade, GMC Yukon, Chevrolet Tahoe, and Suburban full-size SUVs at its plant, Arlington, Texas. The plant had to cease its operation temporarily as the production of the upcoming models were suspended this week.
A GM spokesman reiterated the statement said last week that it was not sure yet to when the plant would resume its functioning and the company would “continue to evaluate” whether to reopen those plants on a week-by-week basis, with following the guidelines of “employee safety.”
Closure of Some Plants
With the recent move of the US government to contain the spread of the highly-contagious disease, GM had earlier decided to close down most of its US plants indefinitely. In its Monday email, GM sent notices to suppliers to halt their productions of automobile parts of the company and asked them not to waste of materials or any tools.
In separate emails to suppliers, GM revealed that it had canceled the production of the outgoing Escalade, Yukon, Tahoe, and Suburban SUVs this week, which were prepared for the launch of the redesigned 2021 models.
However, GM told Reuters that the company has decided to finish the build-out of the current SUVs on a single shift in Arlington with the help of some volunteers from its workforce. GM explained that it has taken precautions to ensure the safeguard of the workers in the plant including thermal temperature scanning and additional personal protective equipment.
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