GM cuts SUV, truck production
NEW YORK (AP) - July 28, 2008 GM spokesman Tony Sapienza said the Detroit-based automaker will
achieve the cuts by eliminating one shift each at its Moraine,
Ohio, and Shreveport, La., plants. Most of the cuts will affect
production of trucks and sport utility vehicles.
The Moraine plant makes the Chevrolet TrailBlazer, GMC Envoy,
Buick Ranier, Isuzu Ascender, Saab 9-7x midsize SUVs, while the
Shreveport plant currently produces the GMC Canyon, Chevrolet
Colorado and Hummer H3.
The cuts bring GM's total production cuts to just under the
300,000 units company officials had hoped to cut this year,
Sapienza said.
GM also is looking at the possibility of idling production at
other truck and SUV plants later this year to further align its
offerings with consumer demand, he said.
Record-high gas prices and a weak overall economy have led to a
steep drop in U.S. sales of trucks and SUVs this year, as consumers
have opted for small, more fuel-efficient passenger cars or put off
buying new vehicles all together.
GM's U.S. sales were down about 16 percent for the first half of
this year, largely as a result of a plunge in truck sales, and it's
not the only automaker facing lower demand.
Japanese rival Toyota Motor Corp., which outsold GM by 277,532
vehicles worldwide in the first six months of this year, cut its
global sales forecast earlier Monday by 350,000 vehicles to 9.5
million, blaming sluggish North American sales.
Toyota also is shifting production from SUVs and trucks to
smaller models. It said earlier this month that it plans to shut
down truck and SUV production at its U.S. plants for three months
starting in August, and it will start building the Prius hybrid in
the U.S. for the first time in 2010.
GM shares fell 42 cents, or 3.5 percent, to $11.48 in midday
trading.
