COVID-19: GM Delays Launch of Updated and New Models

General Motors has told employees and suppliers that development and work on several upcoming models have been put on hold in order to save cash during the COVID-19 crisis.

Reuters and The Detroit News received confirmation from GM that planned updates to the Chevrolet Equinox, Bolt EV, Camaro, Traverse and Silverado 1500, GMC Terrain and Sierra 1500 as well as the Cadillac XT4 will be delayed. In fact, they’re now scheduled for calendar year 2021, with most of them being launched as 2022 models.

On the other hand, the automaker is pushing ahead with its next-generation EVs such as the GMC Hummer EV, Cadillac Lyriq and Chevrolet Bolt EUV, not to mention the new Ultium battery system that powers them.

Meanwhile, production of the redesigned 2021 Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL and Cadillac Escalade might not begin in late April as expected. The initial plan was for Chevy’s large SUVs to hit the market in the spring, followed by GMC’s this summer and the Escalade this fall.

Earlier this week, GM solicited volunteers from its workforce to finish the production of the outgoing models on a single shift in Arlington, Texas.

Another thing you have to keep in mind is that dealers still have lots of units in their stocks due to the extremely low demand since mid-March. Sales results for the last month and the first quarter of 2020 will be out by the end of the week and we expect an ugly picture.  

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