A Big — Bad — Call on Gas Prices
2006: Convinced that gas prices will remain low and that it can expand its share of the profitable market for big SUVs, GM launches a new wave of redesigned and re-engineered full-sized SUVs, such as Chevy's Suburban and Cadillac's Escalade, in early 2006. The emphasis on big sport SUVs pushed development of new, more efficient passenger cars and engines into the background. The launch of the new SUVs in the wake of the 2005 hurricane season, which left the Gulf Coast's oil industry in disrepair and New Orleans in ruins, reinforces the perception that GM's management is out of touch with the changes unfolding in the economy and across the country. The company reverses course somewhat late in the year when it launches development of the Volt electric vehicle.