• Associated Press via MSNBC, Friday, November 24, 2006 11:15 AM

Saying it will focus intently on the growing crossover segment, General Motors Corp. announced Wednesday that it was reversing previously announced plans to develop a new family of minivans based on its front-wheel-drive architecture. The company's new crossovers, which are based on a car-like chassis but are designed to look like SUVs, will directly compete with the shrinking minivan segment.

While GM now sells minivans under various brands, sales of those models are on the decline, and the vehicles are scheduled to be phased out later in the decade. The company had been working on a plan to launch a completely redesigned series of minivans in 2009 that would have shared an architecture with new full-size crossover SUVs that are just now hitting the market.

DaimlerChrysler AG's Chrysler Group, Toyota Motor Corp., and Honda Motor Co. collectively have 54% of the minivan market, with Chrysler's models grabbing 29%, according to Ward's Automotive Reports. The entire U.S. minivan segment is off 10% in 2006, while crossover sales are up 9%.

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