General Motors will cease production of compressed natural gas (CNG) full-size vans at the conclusion of the 2004-model year, according to a company memo as reported by Calstart on August 6. The cut includes both bi-fuel (KL6) and dedicated (KL8) CNG Chevrolet Express and GMC Savana vans. According to the memo, GM has experienced a continued decline in market demand for CNG-capable vehicles over the past few years, and "The volume reduction experienced by OEMs has placed increased cost pressures on GM and CNG suppliers." This follows on the heels of Ford's recent announcement to withdraw from the domestic market for CNG vehicles. All in-system 2004 model year orders for Express or Savana vans with KL6 and KL8 will be produced. In addition, GM will continue to provide a gaseous-fuel-ready 6.0L engine for the Express and Savana. GM will also continue to provide a variety of CNG-capable full-size Silverado and Sierra pickups, including a bed delete option.

Originally posted on Fleet Financials