Jun 11, 2008

GM to shut 4 pickup and SUV plants

General Motors plans to shut 4 pickup and SUV plants, build more fuel-efficient vehicles, and may dump the Hummer.

Large S.U.V.’s like the Chevrolet Tahoe and Ford Expedition ruled the road a few years ago. Sales of those gas guzzlers and others like them are falling under pressure from high fuel costs.

GM is looking at possibly selling its Hummer unit as part of a strategic review of the SUV brand based on military vehicles.

The Hummer H3 mid-size SUV gets about 13 to 14 miles per gallon in city driving in the most recent EPA ratings. The H1 and H2 are larger vehicles on which EPA does not give mileage estimates.

GM, as well as other U.S. carmakers, are thinking “SUV’s out -- small cars in.”

The plants to be closed include two U.S. facilities: The Moraine, Ohio plant that builds midsize SUVs, such as the Chevrolet Trailblazer and GMC Envoy; and the Janesville, Wisc., assembly line that builds large SUVs such as the Chevy Tahoe and Suburban and GMC Yukon.

In addition, it plans to close a pickup plant in Oshawa, Canada, and a truck plant in Toluca, Mexico.

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