GM No Longer to Hum Along: Auto Giant Unveils New Plans to Close Plants, Introduce Greener Cars
Hit by a steep decline in pick-up truck and sport-utility vehicle sales, General Motors Corp. announced today plans to close four North American plants, while outlining efforts to introduce more fuel-efficient cars and engines.
The top-selling U.S. auto maker, which announced its latest restructuring moves ahead of its 100th annual shareholders meeting, also launched a review of its Hummer brand, which could lead to the sale of the line-up of large SUVs perceived as gas guzzlers. At the same time, the Detroit auto maker affirmed its commitment to funding production of the Chevrolet Volt plug-in electric-hybrid vehicle, with a target of hitting showrooms by late 2010.
This move by GM represents the second major restructuring in three years and could result in 10,000 job cuts, are expected to generate an additional $1 billion in cost savings, while helping the company catch up to changing consumer demand. The company plans to cut annual production capacity by 700,000 vehicles.
Published on June 3, 2008
Are you a retail Agent Looking for a Quote?