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GM to close plants, rush to cars as gasoline rises
WILMINGTON, Del - General Motors Corp on Tuesday announced a series of steps to cut jobs, costs and its exposure to slow-selling trucks and SUVs in response to a rise in gasoline prices that that the automaker now sees as permanent.
Chief Executive Rick Wagoner, speaking to reporters after a restructuring plan was approved by the automaker's board, said GM would close four North American truck plants and add shifts at two plants making more popular car models.
In addition, Wagoner said GM was reviewing the Hummer brand and could sell the military-derived SUV brand, which has become a synonym for gas-guzzling excess.
"U.S. economic and market conditions have become significantly more difficult," said Wagoner, who said higher gasoline prices have caused consumers to swap out of trucks and SUVs faster than the automaker had expected.
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