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GM Announces Closings of Four Truck and SUV Plants |
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Written by Zane Merva
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Tuesday, 03 June 2008 |
General Motors announced today their intentions to close four truck/suv plants due to a decline in sales. GM's Oshawa, Moraine, Janesville, and Toluca locations will cease production by 2010 or sooner if demand continues to drop. In addition to the closings, the Pontiac and Flint plants will also have shifts removed to cut production.
An official GM press release outlining the plans also states, "GM expects that these actions, along with the recent announcement to remove shifts at two other U.S. truck plants (Pontiac and Flint, Michigan), will result in an additional GM North America structural cost savings of more than $1 billion, on a running rate basis, by 2010. This is on top of the approximately $5 billion running rate reduction by 2011 that we announced earlier this year, and also in addition to the $9 billion reduction accomplished over the 2006-07 period in North America." GM has not stated where Silverado and Sierra production would move after the Oshawa plant stops production or even if the models would continue to be made. Much depends on the worsening economic conditions in the US along with increasing fuel prices. If these trends reverse and demand increases once again, these plans may change, but those scenarios are unlikely. In addition to the annoucements of declining truck and suv production, GM has also indicated their Chevrolet Volt concept has recieved a green light for production along with a new push for smaller and more fuel efficiant models. GM also announced that their HUMMER brand is under strategic assessment and may be totally revamped or sold off. |
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