GM to End Production of Astro and Safari Rear-Drive Mid-Vans

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End of the Line for Vans Means Baltimore Plant Closure is Eminent

On Tuesday, November 16, 2004, General Motors officially ended speculation and announced that its Chevy Astro and GMC Safari rear-drive mid-vans will be discontinued in 2005. As a direct consequence, the automakers Baltimore, Md. assembly plant, which exclusively builds the two vans, will also close next year.

The Astro and Safari were among the first group of minivans to become available, following Chrysler Groups now legendary original 1984 Magic Wagons to market in 1984 as 1985 models. While the Chrysler vans have gone through many significant upgrades, and still dominate the
market, GMs Astro and Safari have soldiered on mostly unchanged for the past 20 years, showing resilience to market trends that few other vehicles could have hoped to survive through.

What allowed the Astro and Safari to last so long? While not as large as full-size vans, the twin mid-vans offered more interior space than any competitors, seating for up to eight occupants, and a body-on-frame, rear-drive layout that was ideal for hauling heavy loads or towing large trailers, jobs their front-drive rivals couldnt manage to the same level. This made the Chevy and GMC mid-vans extremely popular with trades people, delivery companies, and the like, and kept the Baltimore plant humming for years.

When the Astro and Safari started to reach the end of their lifecycles over the last several years, General Motors management initiated a variety of production changes to better align production with slower demand. First the plants second shift was eliminated in the summer of 2000, and after that production output was slowed gradually. Sales of the Astro totaled only 15,709 in 2003, down 16.1 percent from 2002 and less than half of 1998s 32,736 total production. While the two vans were once best-sellers, during the first 10 months of 2004 production at Baltimore amounted to about 41,000 units, not enough to build a continued business case on. With deliveries continuing to decline, the vans also didnt warrant the investment needed to meet new 2005 safety standards either.

“Long-term market softening and the products lifecycle have driven GM to make this difficult yet necessary decision,” stated Joe Spielman, GM vice president and general manager of Vehicle Manufacturing. “GM can no longer justify building these two products at volumes that are significantly below the plants capacity.”

Currently General Motors employs about 1,000 hourly and 100 salaried employees at the Baltimore facility, which will now be without jobs. While the UAW/GM National Agreement provides a comprehensive plan and provisions for the employees affected by the decision to close the plant, in addition GM management will assist affected salaried employees who are willing to relocate to find jobs at other company locations.

“The men and women of Baltimore Assembly are proud, hard working people who have done a great job of building the Chevy Astro and
GMC Safari over the years,” Spielman added. “Everyone at Baltimore Assembly should take great pride in their many accomplishments and years of dedication to these products.”

No uplifting words, however, will take away the sting each employee will feel when their job is over, nor will it replace the capital infusion these jobs have added to the Baltimore economy. The automaker made it clear that it would remain in the greater Baltimore area, though, via its state-of-the-art transmission plant in White Marsh, Md.

Nevertheless, GM, like all automakers in todays marketplace, faces challenging financial stress, and the plant closure was necessary to safeguard its continued viability in the market, and the rest of its 325,000 strong global workforce.

GM has given no word as to what it will do with the 182 acre Baltimore Assembly plant site, nor its approximate 3.2 million square feet of buildings. The facility opened its doors in 1935, originally producing a variety of Chevrolet cars and trucks. In 1984 the Baltimore plant was converted for exclusive production of the Astro and Safari vans.

The timing of the plant closure and Astro/Safari production end coincides with the most significant mid-van market offensive in the automakers storied history. Over the years, GM has offered front-drive minivans, such as the odd and poor selling Space Wagons, consisting of the Chevy Lumina APV, Oldsmobile Silhouette and Pontiac TranSport that ran from 1990 to 1996, and the much more conventional 1997 through 2004 Chevy Venture, Oldsmobile Silhouette, and Pontiac Montana, which have been so popular that the Detroit-based automaker has managed to climb into second place in the mid-van segment behind Chrysler Group at over 31 percent market share.

While the Silhouette will now go out of production, along with the entire Oldsmobile brand, for 2005 GM hopes to increase its mid-van presence by countering with new Buick and Saturn entries. The Buick Terraza and Saturn Relay, the first Saturn to feature a metal out skin being that all other Saturns are clothed with dent resistant polymer panels, join the new Chevy Uplander and Pontiac Montana SV6.

While carrying over approximately 40 percent of the previous Venture/Silhouette/Montana chassis architecture, as well as their V6, 4-speed automatic drivetrains, the transformation from driving dynamics to interior quality is now black and white. The new vans not only seem capable of hanging on to the significant market share attained by their predecessors, but quite possibly encroaching on Chrysler Groups once unattainable market share stronghold, now reduced to 35 percent.

With regards to the Astro and Safari, GM hasnt made a specific build-out date known, but will fulfill current orders and make them available for the entire 2005 model year. Traditionally plants experience model year changeovers during the summer months, in preparation for the following model year introductions in the fall. While this would be the ideal time for production of the Astro and Safari to end, it is possible that last minute interest in the unique vans could cause output to be extended beyond this period.