GM cancels next generation SRX and H2 refresh
Thursday, 24 March 2005
The H2 was a hot seller when it first came out, but recently it’s been losing quite a bit of its steam and momentum. Sales have been down significantly this year compared to previous years, even with the introduction of the SUT. GM-TC has gained access to an internal GM memo from non-other than Bob Lutz himself. It’s an interesting look into the world of GM and just how much trouble the automaker is in. Unfortunately for the H2 and SRX, it seems each of their refreshes have been put on hold. Not good news for two ill selling models…

"To: Vehicle Line Executives

As part of our efforts to address the current business situation we are
facing today, we have had to make some difficult product portfolio
decisions.

As a result, we are canceling all vehicles planned off of the Zeta
architecture. Since the recent announcement of the Global Zeta Development
Team and Gene Stefanyshyn's Global VLE appointment has been widely covered
by the media, it is important to proactively position this decision
internally and externally. The message should be clear, we are not
abandoning rear-wheel-drive vehicles and we will continue to evaluate our
future RWD plans.

In addition, we are canceling the Hummer H2 MCE* and GMT361/371
right-hand-drive vehicle and delaying the GMT267 Cadillac SRX. There will
be other reductions in concept and show vehicles, SVA/HPVO* activities and
some annual discretionary content.

These cancellations and delays allow us to realign resources to accelerate
some of our key strategic high-volume product launches.

It is very important that you communicate these decisions to your teams,
and that work stop immediately on the programs affected.

We find ourselves in tough times, but with the entire team working
together, we can get through them.

Thanks for your continued support."


Bob Lutz

* SVA/HPVO stands for Special Vehicle Assembly(?)/High Performance Vehicle Operations and MCE is mid-cycle enhancement.

GM cancels next generation SRX and H2 refresh
Thursday, 24 March 2005
The H2 was a hot seller when it first came out, but recently it’s been losing quite a bit of its steam and momentum. Sales have been down significantly this year compared to previous years, even with the introduction of the SUT. GM-TC has gained access to an internal GM memo from non-other than Bob Lutz himself. It’s an interesting look into the world of GM and just how much trouble the automaker is in. Unfortunately for the H2 and SRX, it seems each of their refreshes have been put on hold. Not good news for two ill selling models…

"To: Vehicle Line Executives

As part of our efforts to address the current business situation we are
facing today, we have had to make some difficult product portfolio
decisions.

As a result, we are canceling all vehicles planned off of the Zeta
architecture. Since the recent announcement of the Global Zeta Development
Team and Gene Stefanyshyn's Global VLE appointment has been widely covered
by the media, it is important to proactively position this decision
internally and externally. The message should be clear, we are not
abandoning rear-wheel-drive vehicles and we will continue to evaluate our
future RWD plans.

In addition, we are canceling the Hummer H2 MCE* and GMT361/371
right-hand-drive vehicle and delaying the GMT267 Cadillac SRX. There will
be other reductions in concept and show vehicles, SVA/HPVO* activities and
some annual discretionary content.

These cancellations and delays allow us to realign resources to accelerate
some of our key strategic high-volume product launches.

It is very important that you communicate these decisions to your teams,
and that work stop immediately on the programs affected.

We find ourselves in tough times, but with the entire team working
together, we can get through them.

Thanks for your continued support."


Bob Lutz

* SVA/HPVO stands for Special Vehicle Assembly(?)/High Performance Vehicle Operations and MCE is mid-cycle enhancement.