Gas prices are getting bigger, dollar is getting wicker. But this you already knew. And that the auto makers have big problems because of this two issues is not a secret anymore. With such a background big cars like SUVs or pick-ups seems to have no future.
And maybe is true! GM announced they will focus on building small cars and close four truck and SUV plants.
"Our greatest concern is the unprecedented rise in oil prices," said GM Chairman and CEO Rick Wagoner, speaking before the automaker’s annual meeting in Delaware. "We believe it is, by and large, permanent. We view the near term environment ... with considerable caution.
GM will phase out production at four SUV and truck assembly plants: Oshawa, Ontario, in 2009; Moraine, Ohio, in 2010 or sooner; Janesville, Wis., by the end of 2009 and Toluca, Mexico, by the end of this year.
And while customers ask more and more for sedans such as the redesigned Malibu and crossovers such as the Buick Enclave, there;s no point for huge cars like HUMMER. Wagoner announced that GM is considering the possible sale of its Hummer brand.
For the future Wagoner announced the all-new next generation Chevrolet compact car program. It will be better-equipped, fuel efficient and produced at GM’s Lordstown plant in starting in 2010. Also in 2010 GM will unveil the replacement for the subcompact Chevy Aveo and a new engine module to be produced in Flint.