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Strike Causes GM to Halt Orders for Big Trucks
03:07 p.m. EDT, May 07, 2008

Due to the ongoing strike against American Axle and Manufacturing Holdings, General Motors suspended production of a portion of its full-sized truck and SUV line for 2008.

Vehicles included in the move include the: GMC Yukon, GMC Denali, GMC Sierra heavy-duty regular cab, GMC Sierra heavy-duty extended cab, GMC commercial heavy-duty, Chevrolet Tahoes, and some Chevrolet full-sized trucks.

Randy Fox, a spokesman for GMC, said no orders would be accepted at this time because the company is unable to get the parts it needs to build more vehicles. Additional production cuts are possible given the extended duration of the strike.

In the official notice sent to dealers GM said, "The allocation volume for the Dealer Order Submission Process cycles beginning May 8, 2008, and May 15, 2008, have been canceled." The net effect of the statement is that some existing orders may not be filled.

This means a potential loss of commercial fleet business for dealers who will not be able to deliver larger trucks. In an odd juxtaposition of factors, many dealers may be saved a loss of business due to the current high price of fuel, which is serving to keep the trucking business depressed.

According to GM, they have a 102-day inventory of GMC and Chevrolet 3500 heavy-duty trucks and 178 days' worth of heavy-duty 2500s.


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