G.M. Will Close 4 Plants, May Sell "Hummer"
Gas prices are changing consumer behavior says G.M., forcing the manufacturer to slash production and close 4 plants as they make the shift toward more fuel efficient vehicles. They also announced that they may sell the "Hummer" brand.
From the New York Times
Mr. Wagoner said that rising gasoline prices had forced a “structural shift” by American consumers away from truck-based vehicles built by G.M.
“These prices are changing consumer behavior and changing it rapidly,” Mr. Wagoner said in announcing the cuts before G.M.’s centennial shareholders meeting in Wilmington, Del. “We don’t believe it’s a spike or a temporary shift. We believe it is, by and large, permanent.”
G.M. Closing 4 Plants in Shift From Trucks Toward Cars [NYT]
(Photo: Getty)
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Just had a hunch something bad would happen when I saw all those Hummer dealerships popup everywhere. There is no way they were selling enough to warrant 50 dealerships in a 30 mile area. In fact I havent seen an H2 in about a year and I dont think I have ever seen an H3.
They should have stuck with H1's. Aside from that maybe if they made reliable cars that were good on gas they wouldnt be having such a hard time competing.
GM is an umbrella for several car companies in fact.
This does not surprise me at all. With these tank-like SUVs it must cost a fortune to drive them anywhere now, and gas will only get more expensive. Manufacturers are smart to start cutting their losses now on their gas guzzlers and focus on better renewable technology instead.
Poor clueless GM. Although ditching the Hummer brand is one of their smartest moves lately. Other than a rich idiot who could care less about the environment and other cars on the road who would actually BUY one of these trucks? Now, if GM wants to impress me bring back the Buick Grand National. There's an idea! Or @ least that V-6 turbo motor. God I miss that car, it was the smoothest accelerating fastest car I ever owned.
@SkokieGuy: A Camaro? Or perhaps a Corvette? Just depends on how big and expensive you want your automotive phallus.
Wow - that didn't take long. Excellent work, Ash & Mac!
But if we are have a serious intellectual debate, I would agree that Corvette is clearly the middle-aged, small-penis buyer, however
Cadillac: Mommie didn't love me enough and I'm borderline douchey. Bonus points if they add custom wheels from Rent-A-Center.
Camaro: I'm proud of my GED and don't my tattoos make me edgy? Bonues Points for Mullet and / or acid wash jeans
@SkokieGuy: I gotta defend the Vette, actually. It's got a lot going for it--possibly the most bang-for-buck of any production car out there. But like driving a BMW, you have to ignore the massive stigma that comes with it.
I don't believe in global warming, or that gas prices are going to be forever high. However, regardless, consumers are going for the more efficient cars, thus disrupting GM's sales. This is capitalism and this is how you make change. Why they are closing 4 plants, I don't know. I would re-focus those 4 plants on making more efficient cars.
Regardless, it's sad that this many people will lose their jobs.
I am a geniune car nut, and if we're talking 'why don't they build' cars, my two cents:
Car makers build extreme 'niche' cars that appeal to a very small slice of the auto market, (think about the SSR convertible pick-up truck), Smart Car, etc.
No one makes a large convertible capable of comfortably seating 5 people and no one makes a convertible with a large trunk (especially with the top down). About half of the convertibles out there are essentially two seaters.
Who's old enough to remember the big Buicks, Caddy's, Old's that you could pile 6 people and luggage and go for a road trip? How can a family take a Miata on vacation? How can even two people go on vacation in a Miata?
I have to believe that a larger convertible would be a niche vehicle, it would appeal to a huge market segment. Imagine a Chrysler 300 convertible! Companies are actually custom building them because they are no vehicles that serve this market.
Do automakers think that anyone who wants a convertible has no children, no family, no friends? I dare you to get a golf bag into the trunk of most hard-top convertibles with the top down.
@Ash78: I agree. I like corvettes too. I hope someday to purchase a classic one. Driving one doesn't so much speak to your penis size, as to, how you drive it, and your attitude.
It is possible to drive an expensive powerful machine, without being a complete ass.
@SkokieGuy: i'd have to disagree on the camaro assessment - at least this generation. they've priced it completely out of range for that particular demographic.
& speaking strictly from personal encounters, i would have to second ohiomensch's opinion. cadillac's are mostly driven by women around here.
Seriously, with a 55 or 65 MPH speed limit, what is the point of a Vette unless you offroad race?
In the Midwest, they are too low and powerful to drive in winter, and the horsepower lets you leap from the light faster, so what? Basically the benefit of a Vette or other high performance car is it ability to perform beyond the limits of lawful driving.
@mac-phisto: I dunno, I would venture to say if you pulled over all the Escalades, you would pretty much wipe out illegal drugs in America.
@SkokieGuy: I drive a lexus sc, and while i never get to go its fast speeds, it's still fun how you get off the line, how you hug the turns. I dunno, it's fun. In my college days my s
@Bladefist: If you pulled over all the Escalades here, you eliminate half of the criminals AND half of the attorneys to defend them.
@Bladefist: Who transports illegal drugs in Escalades? Where are you? Certainly no one here does that. Seems silly, in fact.
@Bladefist: where i live, it's all stepford, man - right down to the pocket dogs in their designer pet purse. i bet you'd still find a bag or two of quality cocaine in the console though, so i'm not necessarily disputing your argument.
@Elcheecho: @mac-phisto:
Well being stereotypical of course, in the midwest, everyone who drives escalades is gansta y0. d4wg
@Tracy Ham and Eggs: Nope. Family still has an 01 Sebring, decent trunk, but the new model has been downsized, and with the folding hardtop down, it eats up half the (new smaller) trunk.
Either vehicle can hold two in back - snugly. The Solara is similar.
We'd love to buy a new convertible and love the idea of a folding hardtop, but we'd be giving up 75% of the trunk space we now enjoy.
I hate to say it, but good. It couldn't happen to a more clueless company. GM should have started making more fuel efficient vehicles in the 70s. All American car companies should have. It's stunningly ridiculous that fuel efficiency (among American cars at least) has gone down in recent years. I was just a kid, but I can't be the only one who remembers the gas crisis of the 70s.
If you love your country, I believe it's your patriotic duty to use as little gas and oil as possible.
If they would have concentrated on fuel efficiency 30 odd years ago, they wouldn't be playing catch-up with Toyota, Honda, Nissan, etc. now.
"Buy American" my butt. I'll buy American when they stop giving our country away, dollar by dollar, to countries rich in oil for the sake of profit.
To me, a big SUV is like an adjustable rate mortgage. Sure, maybe you can afford it now, but what about later? Gas was cheap, but that's no guarantee that it will be in the future. (as evidenced by current drastic price increases)
How can efficiency ever be thought of as undesirable? You are literally burning money by gassing up your vehicle. Why on earth would you want to burn more? The logic escapes me.
Where do you live? I'm in AZ, good off-roading country, and I've seen a few H3s here.
Hey, there's potential in Hummer...keep the H3, ditch either the H1 or H2, and make some high-20s-MPG Suzuki-esque model. Or just rebadge a Suzuki.
@Pro-Pain:
Maybe the impression the H1 and H2 have made is just so strong that most people missed it, but the H3 is a completely different vehicle. It is based on the Colorado, the base model has the same 5 cylinder engine, it isn't particularly expensive, and its fuel economy is comparable to its competitors (the Toyota FJ Cruiser and the Jeep Wrangler). It isn't a symbol of excess like the previous two models. It is what GM should have been doing with Hummer all along.
But, hey, it may get dragged down with them just the same, I guess.
I forgot. While registering voters, I did hear one semi-logical argument for fuel inefficiency. It went like this:
"Republicans often get donations from big oil companies. High fuel prices allow more profit, hence bigger donations from oil companies to Republicans. By having high fuel prices, we automatically (indirectly) get Democrats to donate to the GOP. I LOVE high gas prices."
I kid you not. More than one person had an opinion similar to this. Whatever your political party, you must see the error in causing such a dependency for our country.
Let's get off oil. Electrical cars are the future. We already have the electrical power infrastructure and interface in place, we just need more efficient batteries. Mark my words. Electric cars are the future.
As usual with GM , this is about 5 years too late.
When regular gas cracked the $2 level a few years back, the CEO of this fucked up company should have called all of his division chiefs in and laid down the small car /small truck law. Any GM worker bee that dragged his feet should have been shown the door. Now, it's almost too late to re-engineer,redesign, market and build what they need to stay competitive.The Chevrolet dealership in my small town has row after row of massive,dreadnought-class trucks and SUV's that haven't moved in months.These people (and the workers losing their jobs) now have to pay for years of the asshats at the top of GM hearing what they wanted to hear,seeing what they wanted to see.It makes me sick that the world's largest car company cannot design and build a decent small car that you would be proud to own.All of these assembly line workers are getting the heave ho,so why hasn't Rick Wagoner been shown the door ?
BTW- the money that they pissed away on the Hummer could have built a dandy Corolla/Sentra fighter...















What kind of sucker would buy that brand at this point?