Rumor Mill: GM Cancels Kappa II Platform

The latest rumors regarding the shakeup in GM’s upcoming product line are indicating that the Kappa II platform has been canceled. There haven’t been any official announcements from GM, but that’s the way its looking. This is the latest in GM programs to get the axe, along with several GMC programs and the Buick and Cadillac Zeta cars. Sources at GM Inside Line say that the Kappa platform has been a money pit for GM, losing approximately $10,000 per unit when the Solstice and Sky came to market. Considering that, its not hard to see why the Kappa II platform is being cut from the lineup. The Kappa platform is expensive to produce, with the frame using hyrda-forming as part of the fabrication process, but also several body panels use hydra-forming to shape them. Using this method of fabrication for such a low production vehicle doesn’t seem to be very cost effective. Another cost disadvantage of the Kappa was that it was largely hand-built.

There are some rumors that Kappa II would be based off the Zeta platform that will be used as the underpinning for the 2010 Camaro. There was also speculation that the next-gen Kappa vehicles would be constructed in Mexico to offset the monetary loss that accompanies the platform. This plan has been nixed due to the current state of the auto industry. The question that remains is what happens to the current Kappa vehicles, the Solstice, Sky, Opel GT and Daewoo SX2. Will GM drop them from their respective lineups, continue them in current form, or find another chassis to underpin the roadsters? We’ll be waiting anxiously to find out.

[Source: GM Inside News]