GM closing four truck and SUV plants in North America
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WILMINGTON, Del. (AP) — General Motors is closing four truck and SUV plants in the U.S., Canada and Mexico as surging fuel prices hasten a dramatic shift to smaller vehicles.
CEO Rick Wagoner said Tuesday before the automaker's annual meeting in Delaware the plants to be closed are in Oshawa, Ontario; Moraine, Ohio; Janesville, Wis.; and Toluca, Mexico. He also said the iconic Hummer brand will be reviewed and potentially sold or revamped.
Wagoner said the GM board has approved production of a new small Chevrolet car at a plant in Lordstown, Ohio, in mid-2010 and the Chevy Volt electric vehicle in Detroit.
Wagoner announced the moves in response to slumping sales of pickups and SUVs brought on by high oil prices. He said a market shift to smaller vehicles is permanent.
GM shares rose 25 cents, or 1.4 percent, to $17.69 in morning trading.
The cuts will affect about 2,500 workers at each of the four facilities, although Wagoner did not know exact numbers. Many will be able to take openings created when 19,000 more U.S. hourly workers leave later this year through early retirement and buyout offers.
He said the company has no plans to allocate products to the four plants in the future.
"We really would not foresee the likely prospect of new products in the plants that we're announcing today that we'll cease production in," he told a Moraine, Ohio, city official who asked a question in a telephone conference call.
The moves will save the company $1 billion per year starting in 2010. Combined with previous efforts, GM will have cut costs by $15 billion a year, Wagoner said.
Wagoner said General Motors Corp.'s board approved the production schedule of the Chevrolet Volt, and the company plans to bring the plug-in electric car to showrooms by the end of 2010. The Volt runs on an electric motor and has a small engine to recharge its batteries.
He said the change in the U.S. market to smaller vehicles likely is permanent. "We at GM don't think this is a spike or a temporary shift," Wagoner said.
On the Hummer, Wagoner said GM is "undertaking a strategic review of the Hummer brand, to determine its fit with GM's evolving product portfolio" in light of changing market conditions.
Re: GM closing four truck and SUV plants in North America
I don't mind seeing SUV assembly plants getting cut back, but I'd be happier if they transferred the plants over to small car production, rather than laying off workers - which they will.
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Re: GM closing four truck and SUV plants in North America
i agree KAS. enough of these oversized gas guzzlers. ive seen so many ppl that have Excalades and theyre single. i could understand if you have a big family...but one guy owning a Hummer for example...wtf
Re: GM closing four truck and SUV plants in North America
Took them only 6 years too late. America used to stand up for innovation. The big 3 was the leader of the world when it comes to innovation. We're just reaping the rewards and benefits of the innovators from the yester-years. You can't blame this on outsourcing.
Re: GM closing four truck and SUV plants in North America
GM trucks are known as the best in the industry. A sad day. I understand the whole gas gussling thing, but some people need trucks. My truck is needed for me to do my job.
Re: GM closing four truck and SUV plants in North America
Honestly...I really don't blame SUV owners. I know they are holding back on the MPG that all vehicles get. It's time people quit blaming the consumer for a completely legit decision and start blaming the auto makers for giving us excuse after excuse as to why 18 MPG is the best they can do.
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Re: GM closing four truck and SUV plants in North America
I don't buy that.... the demand was so high for SUVs that no one cared about MPG. If the demand was gas guzzlers SUVs, then you supply them
It goes both ways, I blame both the consumer and the automakers. But I don't want to hear a SUV driver whining about gas when he doesn't use it for his job or something important.
Re: GM closing four truck and SUV plants in North America
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Originally Posted by thatsnotgross
I don't buy that.... the demand was so high for SUVs that no one cared about MPG. If the demand was gas guzzlers SUVs, then you supply them
It goes both ways, I blame both the consumer and the automakers. But I don't want to hear a SUV driver whining about gas when he doesn't use it for his job or something important.
Yeah but if you buy it an SUV and gas it at $2.00 can you still whine when it approaches $5.00? I think so...
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Shaquille O'Neal * Stromile Swift * Brandon Bass
Tyrus Thomas * Glen "Big Baby" Davis * Anthony Randolph * Marcus Thornton
GM closing four truck and SUV plants in North America
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