GM closing truck plants, adding new small cars, may drop Hummer
Stung by the huge market shift by consumers, GM is wasting no time in making adjustments to their vehicle production and model mix.
As you might expect, big trucks and SUVs are feeling the brunt of this, and as such, are closing the following plants:
* Oshawa Truck Assembly in Canada, which builds the Chevy Silverado and GMC Sierra, will likely cease production in 2009.
* Moraine, Ohio, which builds the Chevy TrailBlazer, GMC Envoy and Saab 9-7x, will end production at the end of the 2010 model run, "or sooner, if demand dictates."
* Janesville, Wisconsin, will cease production of medium-duty trucks by the end of 2009, and of the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon in 2010, "or sooner, if market demand dictates".
* Toluca, Mexico, will end production of the Chevrolet Kodiak medium-duty truck by the end of this year...
* The Hummer brand is being reviewed. It could be completely revamped—or it could even disappear—or it could be sold.
On the positive side, 18 of the next 19 all-new models will be small, fuel-efficient vehicles. One of which will be a new small—as in really small—car from Chevy. The 1.4L powered car will top 40 mpg, and will be built at—SURPRISE—the USA at GM's Lordstown, Ohio plant. Also, GM will be adding shifts to some factories that build small and mid-size car here.
Let's hear three cheers for the home team!Here's
AutoObserver's take:
GM: Closing Truck Plants; Introducing New Small Cars; Reconsider HummerHere's
Inside Line's take:
GM Confirms New 40-MPG Compact Car in the Works for ChevroletThere's good news for Chevy Volt fans in a news-related story from
Inside Line:
Chevrolet Volt Takes a Giant Leap Forward"We intend to show a production version of the Chevy Volt publicly in the very near future," said Rick Wagoner, GM chairman and CEO, in perhaps the most encouraging news to come out of the GM annual shareholders' meeting here. "We remain focused on our target of getting the Volt into Chevrolet showrooms by the end of 2010."
Wagoner added: "The Chevy Volt is a go. We believe this is the biggest step yet in our industry's move away from our historic, virtually complete reliance on petroleum to power vehicles."
- Permalink | Comments (16)
- Posted by: Bob Holland June 3, 2008, 6:01 AM
- Categories: Auto Industry, General Motors, Trends
GM = good move. Who buys Hummer these days?
Music, sweet music!
Yeah, really, who would pay for Hummer?
Let's see a modern sub-compact, competitive with the Fit, and a new compact to replace the Cobalt as well.
So they're not retooling any of those plants for these new models, right Bob?
Thousands of people losing theirs jobs is sweet music? I don't think so. Perhaps such massive closures are GM's only move at this point, but I can't be so flippant about the ripple effects.
roar02ram
I don't know.
What's great (insert sarcasm warning) is the news that domestic refineries are cutting back on gas production due to lack of demand (and thus keeping prices high) and are increasing diesel production to take into account the current higher profit margin on diesel fuel.
This greed is now costing domestic jobs, as can be seen by GM's news.
EXCELLENT point desmolicious!
desmo I hadn't heard that. If its true, then that makes me sick. It doesn't surpise me in the least of course, but I just hadn't heard it. People are savages.
"Thousands of people losing theirs jobs is sweet music?"
Those jobs are going to be lost anyway if GM doesn't start building more fuel efficient cars.
Those jobs may be lost anyway if the UAW strikes again.
From LA Times:
"Some experts attributed the increases in California to refinery problems. In addition, the state's refiners are making more diesel and aviation fuel -- reducing gasoline production -- to cash in on those more lucrative products. Diesel climbed above $5 a gallon for the first time last week in California."
http://www.latimes.com/business/la-fi-gas3-2008jun03,0,6874230.story
Also the price of oil has dropped the last week or so, but gas prices have continued to climb. You think this is open market at play?..
The price of oil has just dropped again today due to the strengthening dollar, you think there's going to be a significant drop in gas prices?
http://www.latimes.com/business/la-fi-oil4-2008jun04,0,311439.story
Desmolicious, the gas prices will drop and right after that we will have peace in the Middle East and a cure for cancer.
Seriously, I know where you're coming from. I hadn't read those articles, but none of it surprises me. My main lubricants supplier tells me that he's heard there's as much as $80 worth of speculation in the price of oil right now. I don't know how much speculation there really is in the price, but we all know that speculation has driven the cost higher than it should be.
Why settle for a little profit when you can gouge the public for an obscene one?
The price of gas will fall, it always does. People have such short memeories.
How many times in the past 5, 10, 20 years have there been spikes in the price and then it falls back to normal?
Of course it will always trend upwards.... but then what doesn't.
BTW I don't blame the oil companies for the price of oil. I agree there is as much as $80 of speculation in the price but that is controlled by the market, not the oil companies.
You may not blame them for the price of oil but you can for the price of gas. How else can you explain that while the price of oil has dropped over the last 2 weeks, gas has increased?
And the fact that in CA the refineries are cutting back on the production of gas to maintain high prices.
You'll see what's going to happen, in a month or so as people drive fewer and fewer miles, a refinery or two will miraculously be taken off line due to accidental damage, or much needed maintenance or whatever other excuse they need to keep the supply limited and the price high. Funny how that 'routine maintenance' never happens during the slow season..
"can you explain that while the price of oil has dropped over the last 2 weeks, gas has increased? "
The price of gas doesn't follow the price of oil that fast. It takes time for the gas in the system to work it's way through.
Dispite all the doom and gloom you here on web sites and in the media, the price of gas will start to fall in the next month or so.
Unless of course if it's a big hurricane season and then the speculators will drive the price of gasoline futures up.
"The price of gas doesn't follow the price of oil that fast. It takes time for the gas in the system to work it's way through. "
That appears to only be true with decreases. Increases happen right away.