GM is closing four of its truck and SUV plants in the U.S., Canada and Mexico as fuel-prices are showing no signs of coming down. CEO Rick Wagoner said today at GM’s annual meeting in Delaware that plants to be closed are in Oshawa, Ontario; Moraine, Ohio; Janesville, Wisconsin; and Toluca, Mexico.
Wagoner also said that the Hummer brand, which produces only trucks and SUVs, may be discontinued. He said the brand is under ‘strategic review’ and that GM is considering all options at this point from a product lineup revamp or the sale of the brand.
GM’s board has also approved production of the new Chevrolet compact car we told you about yesterday. The un-named care will be built at the GM’s plant in Lordstown, Ohio.
The plant closings will affect about 2,500 workers at each of the four facilities. However, Wagoner said many of those workers will be able to take openings created when 19,000 hourly workers leave later this year through early retirement and buyout offers.
The move is expected to save GM $1 billion per year starting 2010. Combining that with previous efforts, GM will cut costs by $15 billion a year.