General Motors’ large SUV plant in Arlington, Texas, is about to get a major overhaul to the tune of $331 million in order to prepare for the next-generation versions of the Chevrolet Suburban and Tahoe, GMC Yukon and Cadillac Escalade.
The plant will be getting the necessary changes in order to produce the new models, which are expected to arrive sometime in 2013 to 2014, as well as adding additional production capability. GM has seen solid full-size SUV sales in other markets, namely China, Russia and the Middle East, even as decline has diminished in North America compared to its heyday about a decade ago.
As a result of the changes to the facility, GM will also be adding 110 new hires as part of its overall plan to add approximately 4,000 new jobs in the U.S. over the next few years.
It is expected that GM secured a $1.6 million tax break with Tarrant County this week. The abatement represents a 70 percent cut in tax revenue in exchange for expansion of the plant. While GM will surely welcome to savings, it was far from the $3.4 million the automaker originally sought.
What we know about the next-generation SUVs
GM had not publicly and officially confirmed development of a replacement for its current GMT900 platform-based SUVs until today, when Larry Zahner, the automaker’s Manufacturing Manager, announced the investment.
Zahner called Arlington the “home of GM’s full-size SUVs today and tomorrow,” a comment which elicited an uproar of applause from the plant’s workers, who were gathered to hear the good news.
What Zahner wouldn’t comment on was specifics about the vehicles’ replacements. By most accounts, the GMT900s have been a resounding success for GM – especially given that consumers have generally trended away from large SUVs and smaller crossovers. Still, automakers acknowledge that big SUVs account for a decent share of the market, with sales expected to hit around 250,000 units for the non-luxury market alone.
And that’s a market that GM positively dominates. Its GMC and Chevrolet models are up 7 percent this year to 49,490 units through the first four months of 2011. That’s more than twice what Ford, Nissan and Toyota have sold – combined. Dodge is making big headway with its redesigned Durango, although it is smaller and utilizes unibody construction compared to the simpler – but more durable – body-on-frame design of the GMT900s, the Ford Expedition, the Nissan Armada and the Toyota Sequoia.
At this point, all we can do is speculate about the big GM ‘utes’ future. Look for them continue sharing a platform with GM’s next-generation full-size pickups, although a changeover to a fully independent rear suspension seems like a necessary move for both packaging – think fold-away third rows – and weight reduction for fuel savings.
GM’s next-generation V8s will offer more power and notably better fuel economy – although the trucks are currently the highest rated in the segment at 15/21 with the 5.3-liter V8.
Look for more news about the next-generation GM SUVs to sneak out of the automaker’s headquarters soon.
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