GM closing down 4 SUV/Truck Plants

This is not a surprise move by any means, but it is still stark reality smacking us in the face. In light of tremendously sagging truck and SUV sales, General Motors has announced that by 2010 4 plants making SUVs and trucks will be closed globally. It's not all awful news though, as they also plan on expanding certain plants that specialize in sedans, including the Chevrolet Malibu and Pontiac G6s.

This follows the long line of red that GM hoped it would recover from by the end of 2008, but with a double whammy hitting them--GMAC LLC mortgage has had severe losses as well--the company is not predicting the housing market issue to recover for quite some time, meaning that the company as a whole has to start digging and cutting to get back to black.

Though several reductions, including the 19K buyouts of workers that was offered in Spring, GM will have nudged 15 billion off its loss sector, but as the company has said, it will still be a very tough 2008. Are they reacting too harshly and panicking? I don't think so. Even discussions about phasing out such things as the Trailblazer and the possibility of getting rid of the Hummer brand altogether through phasing out or selling the name seem a little late in the game. But we are a country of a lot of trucks and SUVs still, and with the gluttonous culture of the United States, who knows what this will mean on a long-term front. But until both ships (auto and mortgage) seem to right themselves, expect cuts like this to continue to run their course.

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GM closing down 4 SUV/Truck Plants

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