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Adieu to Camaro, Firebird
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September 25, 2001: 3:54 p.m. ET
GM says shift to SUVs, overcapacity spell end of cars with loyal following
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NEW YORK (CNNfn) - General Motors Corp. is dropping its Chevrolet Camaro and Pontiac Firebirds after the 2002 model, and closing the Canadian plants where they were made, although the automaker termed the halt in production a hiatus rather than a final termination.
The company said the decision is due to drop in demand the regular sports car segment of the industry, which it said has seen a 53 percent decline in sales from 1990 to 2000. The company also pointed to the need to reduce carmaking capacity at the company and in the industry.
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The 2002 Camaro will be the last model of the 35-year old sports car model. | |
The Ste. Therese, Quebec, plant, where the two models are produced, is slated to close in fall of 2002 because of this decision. It has 1,065 employees on its current payroll and 380 on layoff status and almost all are eligible for retirement now or in the next few years, according to GM (GM: down $1.87 to $41.36, Research, Estimates).
The Camaro has seen sales in the first eight months of the year fall to 22,339, down 25 percent from a year earlier, while the Firebird sales have dropped 28 percent to 16,225. But the models retain loyal customers and enthusiasts, GM conceded in its statement.
"We appreciate the strong emotions that our customers have for these cars," said a statement from John G. Middlebrook, GM vice president and general manager vehicle brand marketing & corporate advertising.
The company said part of the reason for the decision is the increasing popularity of light trucks, such as sports/utility vehicles, rather than car models.
The decision is another blow to tradition at GM, which in December announced it would discontinue the Oldsmobile brand name, ending North America's oldest car brand.
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The decision also comes as competitor Ford Motor Co. (F: down $0.31 to $16.12, Research, Estimates) is set to reintroduce its Thunderbird sports car, bringing back a car that was originally designed as Ford's answer to another GM icon, the Corvette. The Thunderbird was discontinued in 1997 and redesigned along the lines of the original 1950s models. 
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General Motors
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