Back in 2005, there was a prediction that General Motors Corporation would eliminate 30,000 jobs and close nine North American assembly, stamping and powertrain plants by 2008. Looks like that prediction has come true. GM announced today that they are closing four truck and SUV plants in the U.S., Canada and Mexico, affecting 10,000 workers. Dealerships have seen a 65% drop in truck sales from last year, and high gas prices are being blamed. I couldn't believe that here in Pasadena, a gallon of regular gas was $4.32, and it's only going to get worse.
Looks like more and more drivers are downsizing...hoping to save a buck at the pump. General Motors CEO Rick Wagoner said today that a market shift to smaller vehicles is permanent. He also said that the iconic Hummer brand will be reviewed and potentially sold or revamped. The GM board has approved production of a new, small electric vehicle called the Chevrolet Volt. It's pictured below.
GM has taken notice that vehicles like the Toyota Prius and Honda Civic Hybrid are flying off of the car lots, and they're hoping the upcoming 2010 Volt will give their business a jolt. It's no secret that foreign automakers are doing well. In fact, they've recently built or announced plans to build five U.S. assembly plants. Recent auto reports have shown that In 2007, foreign auto companies employed 113,000 people in the U.S., and that number is expected to rise to 152,000 by 2011.Expect to see great deals on trucks and SUVs coming to a dealership near you. But it makes you think, even if you were to get the deal of the century, would it be worth it in the long run? It may be time to dust off the ol' bike.
