DETROIT — Rising gas prices and the continuing economic downturn have forced General Motors to make a dramatic cut in full-size truck production. The announcement was made on Monday as the Detroit automaker said it will remove about 88,000 units of full-size pickup and 50,000 units of full-size SUV production from its North American production capacity for the rest of 2008.
The price of gas nationally averaged $3.60 a gallon on Monday, according to the U.S. Department of Energy.
General Motors said it will "explore options to expand car production," noting that it is seeing strong sales of the Chevrolet Cobalt, Chevrolet Malibu and other passenger cars. There are no changes to car production at this time, however.
"With rising fuel prices, a softening economy and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities," said Troy Clarke, GM North America president. "This is a difficult move, but we remain committed to retaining and growing our leadership position in the full-size truck market."
GM said it will cut one shift of production at its full-size truck assembly plants in Pontiac and Flint, Michigan; and Oshawa, Ontario; as well as its full-size SUV assembly plant in Janesville, Wisconsin.
What this means to you: More painful adjustments in the Motor City, as buyers curb their enthusiasm for big trucks and SUVs. — Anita Lienert, Correspondent
The price of gas nationally averaged $3.60 a gallon on Monday, according to the U.S. Department of Energy.
General Motors said it will "explore options to expand car production," noting that it is seeing strong sales of the Chevrolet Cobalt, Chevrolet Malibu and other passenger cars. There are no changes to car production at this time, however.
"With rising fuel prices, a softening economy and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities," said Troy Clarke, GM North America president. "This is a difficult move, but we remain committed to retaining and growing our leadership position in the full-size truck market."
GM said it will cut one shift of production at its full-size truck assembly plants in Pontiac and Flint, Michigan; and Oshawa, Ontario; as well as its full-size SUV assembly plant in Janesville, Wisconsin.
What this means to you: More painful adjustments in the Motor City, as buyers curb their enthusiasm for big trucks and SUVs. — Anita Lienert, Correspondent
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