GM to close 4 factories, may drop Hummer

[MAC]

GM to close 4 factories, may drop Hummer
Automaker to curtail truck, SUV production amid soaring fuel prices

WILMINGTON, Del. - 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 may be discontinued.

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.

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 GM'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.

The Detroit-based automaker also has just emerged from a spate of labor problems, with two local union strikes at key factories and a nearly three-month strike at key parts maker American Axle and Manufacturing Holdings Inc.

GM said in a recent regulatory filing the strikes will cost it a total of $2 billion before taxes in the second quarter.

source: http://www.msnbc.msn.com/id/24947044/

[Dan]

Good riddens, there are too damn many trucks and suvs on the road as it is.

[Muscle Master]

This might mark the end of the V8's, not the performance V8's, talking about the ones in SUV'S, trucks, and replacing them with high powered V6's with AFM systems which is not a bad thing, look at the Ford Flex

Ford might steal the SUV market from GM, not saying GM dont have the Tahoe/Yukon hybirds but how much are they

[Saladbar]

I've got my SUV.... This won't effect me.

I sure would've liked to see an HX - or whatever that Jeepy looking Hummer was.

[GTAHVIT]

Originally Posted by Dan

Good riddens, there are too damn many trucks and suvs on the road as it is.

Good riddance, there are too damn many GTO's and Camaro's and big V8 powered muscle cars on the road as it is.....


You might want to think about that a little bit. After trucks and SUV's, muscle cars will be the next "inappropriate" indulgence that is deemed unacceptable.

Make no mistake the muscle car will be next if this trend continues. Unless we can figure out a way to get over 30 mpg, or reduce the price of oil.

[MAC]

Originally Posted by Dan

Good riddens, there are too damn many trucks and suvs on the road as it is.

my sentiments exactly.
the H2 & H3 are rediculous gas hogs, completely unnecessary.
they aren't "luxurious", they aren't "sporty", they aren't nearly as sturdy as the old school hummers. No way in hell the H2 could withstand that which the originals did. One of the people at my work bought one just to, basically - have a giant gas hogging hunk of junk.
What real purpose does it possess?. It's not convenient in any way shape or form.
I personally hope it is the end of V8 engines. they're stupid. (No, I don't mean performance V8's) I just mean V8's like are in the Hummer.
and just to add. I'm not one of your Prius driving conservative guys. (not that there's anything wrong with them)
I freakin love hearing V8 Performance engines.
and to you camaro enthusiast's who are gonna get a performance v8 camaro the day it comes out.....I had better hear that engine roaring from a mile away flooding out that annoying buzzing noise. (ricers)
Anyway I'm done ranting/raving.
Sorry if I offended anyone.

[Mr. Wyndham]

Originally Posted by gtahvit

You might want to think about that a little bit. After trucks and SUV's, muscle cars will be the next "inappropriate" indulgence that is deemed unacceptable.

I don't think so...I mean, there aren't nearly as many of them as SUVs and trucks, so they don't have as big an impact becuase of that, and (I like saying this) their mpg ratings are higher than SUVs.

This is optimistic thinking; but if the whole market shifts towards cars on a grand scale...I can see people wanting MORE fun cars. A better-suited 'useless' vehicle, than the SUV...

[GTAHVIT]

Originally Posted by Dragoneye

I don't think so...I mean, there aren't nearly as many of them as SUVs and trucks, so they don't have as big an impact becuase of that, and (I like saying this) their mpg ratings are higher than SUVs.

This is optimistic thinking; but if the whole market shifts towards cars on a grand scale...I can see people wanting MORE fun cars. A better-suited 'useless' vehicle, than the SUV...

I hope you are right. With emotion of every car memory I have, I hope you are right. However, I would pose this question. After trucks and SUV's, what would you trim next given the consumer demand for more fuel efficient cars?

Now I will admit that performance coupes and sedans have the beneifit of a base model that is economically focused. Whereas there is little or no talk of a twin turbo 4cyl or a DI V6 in full sized trucks.

And I agree the consumer will make the choice for GM. If we are still buying HiPo cars they will still build em. Obviously we, the consumer, aren't buying enough trucks and SUV's to make it worth it for GM.

[GTAHVIT]

Originally Posted by aston70

I'm personally interested that they said they approved the production schedule for the Volt. Seems to me something that might compete well with the prius.

I commute about 20-30 miles a day. So if I had a car like that, I would need gas only on long trips or in my camaro on weekends. I think (hope) eventually the technology will develope further to increase that electricity-only 40 mile range so that eventually the gas engine wouldn't be required thus reducing cost and weight. Sorta like the tesla roadster (220 mile range).

For now I see it as a step in the right direction. If they can get just the cost down. We'll see I guess.

+1 VOLT

[DGthe3]

There are way too many trucks and SUV's out there. Many of the ones that are needed actually require a big powerful engine. The sales numbers are inflated from what they need to be, this is shown by the massive drop in their sales this year. Also, I never thought that Hummer deserved a brand of its own. Let GMC (Denali) and Cadillac make higher end SUV's (still not needed, but some people want it). The thing that sucks about this is that GM just agreed to not cut back to one line at the truck plant in Oshawa, what like 2 weeks ago? Now they decide to close it.

[Mr. Wyndham]

Originally Posted by gtahvit

I hope you are right. With emotion of every car memory I have, I hope you are right. However, I would pose this question. After trucks and SUV's, what would you trim next given the consumer demand for more fuel efficient cars?

I'll pose one right back; why does there have to be a 'next'? Needless SUVs and Trucks have been, are, and always will be the problem when it comes to fuel efficiency. The market preference in the US always shifts between the two:
Cars? :seesaw: Trucks?
Sports cars have always had a backseat ride in the grand scheme of things...becuase they've never really ever come into the fuel-economy spotlight quite like trucks have. Sure, in the 70's lots of them were killed, and those that were left were emasculated; but that shows that (even though it was embarassing, performance-wise) sports cars can adapt to the times because they are, after all, just cars. Big SUVs can't do that. You have to change the entire body-style to maintain the sense of SUV and see some measure of fuel economy increase (See: Crossovers). The only thing I can honestly think of about muscle/sports cars as tied to the fate of trucks is the V8 engine.

[The_Blur]

I think Hummer should just build one model or turn into more of a Jeep for GM. Jeep is a very successful segment that could use some competition. Basically, Hummer needs a Liberty and a Wrangler.

I'm really angry about the union's description of this action as betrayal. The term is "good business"—the idea of producing products that actually sell.

[GTAHVIT]

Originally Posted by The_Blur

I think Hummer should just build one model or turn into more of a Jeep for GM. Jeep is a very successful segment that could use some competition. Basically, Hummer needs a Liberty and a Wrangler.

I'm really angry about the union's description of this action as betrayal. The term is "good business"—the idea of producing products that actually sell.

+ 1,000,000

[GTAHVIT]

Originally Posted by Dragoneye

I'll pose one right back; why does there have to be a 'next'? Needless SUVs and Trucks have been, are, and always will be the problem when it comes to fuel efficiency. The market preference in the US always shifts between the two:
Cars? :seesaw: Trucks?
Sports cars have always had a backseat ride in the grand scheme of things...becuase they've never really ever come into the fuel-economy spotlight quite like trucks have. Sure, in the 70's lots of them were killed, and those that were left were emasculated; but that shows that (even though it was embarassing, performance-wise) sports cars can adapt to the times because they are, after all, just cars. Big SUVs can't do that. You have to change the entire body-style to maintain the sense of SUV and see some measure of fuel economy increase (See: Crossovers). The only thing I can honestly think of about muscle/sports cars as tied to the fate of trucks is the V8 engine.

OK, you answered your own question and I don't disagree with your scenario.

But, if gas prices continue to climb and we can't get our precious muscle cars to become more fuel efficient at an equivalent rate, I say they will succumb to the same fate. The consumer will ultimately decide if GM should sell GTO's, CTS-V's, SS/Z28 Camaro's and G8-GXP's or not. My prediction is: If gas prices get to high and the fuel efficiency technology is too expensive, or unable to offset the cost of gas, we will see the same thing that happened in the 70's to a much larger degree. Meaning, V8 muscle cars are next in line on the chopping block. We MAY be on the fringe of having to settle for a SS/Z28 V6 Camaro. I guess this is more about the future of the V8 in sports car than sports cars all together. I concede that point to you. As well as the future of the V6 Camaro is much more secure than that of the V8.

It makes me sick to even think this way.....