GM to cut production of SUVs and trucks

[Pale Blue Dot]

Source: MSNBC

NEW YORK - General Motors Corp. said Monday it will cut production by another 117,000 vehicles, citing continued weak in consumer demand for pickup trucks and sport utility vehicles.

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.

http://www.msnbc.msn.com/id/25887305/

Read more: http://www.msnbc.msn.com/id/25887305/

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Of course under normal circumstances this would be great news. However, this is going to cost even more jobs that won't be coming back.

[Wickerman]

1. Wow, what vision! n/t

[Tandalayo_Scheisskopf]

2. Geez.

Only 7 years too late. I love it when a large corporation can turn on a dime.

[Prisoner_Number_Six]

3. They finally got smacked upside the head with that clue stick.

Good.

[NV Whino]

4. A little late to the party

[depakid]

9. Honda profits up 8.1% for the quarter over last year...

[snooper2]

5. I don't know why they would cut the Canyon

and Colorado...

I see new ones all over the place now

[CRF450]

7. Yeah, they get pretty decent fuel milage for a truck.

[Ichingcarpenter]

6. They spent $500 million on expanding that plant for SUVs in 2003

Even in 2003 many saw the writing on the wall but not GM.


http://www.sb-d.com/archivesite/www.sb-d.com/issues/Winter2005/features/SAC.html

[Auggie]

8. Last again!

[Yavin4]

10. Don't Blame GM. Blame Wall Street

In the 90s and into this decade, trucks and SUVs meant huge profits for GM and their fellow US autos, and huge profits pleases Wall Street. If they had switched to hybrids or more fuel efficient cars, their stock would have dipped.

Thus, this is the biggest problem with American business management. You manage the stock price and not the company.

[Ichingcarpenter]

13. Honda .... Toyota....... GM Stock charts

http://tools.morningstar.com/charts/MStarCharts.aspx?Security=HMC&CountryId=USA&ExchangeId=NYSE&TimeFrame=Y5&Totals=&Types=&bSize=299&Legend=Yes

http://tools.morningstar.com/charts/MStarCharts.aspx?Security=TM&CountryId=USA&ExchangeId=NYSE&TimeFrame=Y5&Totals=&Types=&bSize=299&Legend=Yes&Rndnum=1924

http://tools.morningstar.com/charts/MStarCharts.aspx?Security=GM&CountryId=USA&ExchangeId=NYSE&TimeFrame=Y5&Totals=&Types=&bSize=299&Legend=Yes

[Yavin4]

15. The Charts Prove My Point

In 2003, GM's stock was much higher because they made trucks and SUVs. If they had abandon that segment in 2003, they would have gotten clobbered in 2003.

It's one thing to lose market value because of current market conditions outside of your control like a spike in gas prices. It's a whole other thing to voluntarily lose market share.

[Ichingcarpenter]

16. Not really......

Don't want to get into a pissing match

I posted up link on what everyone was spending their money on
and GM spent $500 million on the wrong thing just at one factory.

http://www.sb-d.com/archivesite/www.sb-d.com/issues/Winter2005/features/SAC.html

[Yavin4]

18. Look At Your Charts Again

In 2003, GM's stock price was riding high BECAUSE they made over-sized cars and trucks. That's why their stock price in 2003 was HIGHER than Toyota's and Honda's. Just look at your chart.

Wall Street rewarded them for NOT getting into the hybrid business back in 2003.

GM's management is not stupid. They just did what got them the higher stock price at the time.

[lithiumbomb]

11. these are all pretty old models at this point

The TrailBlazer and its cousins are being phased out anyway as they're at the end of their life cycle. They are to be replaced in 2009 by a car based SUV, the Traverse, to be built at the old Saturn plant in Tennessee.

The Colorado family of trucks is powered by 4 and 5 cylinder engines, the 4 banger does pretty decent for a truck at 18/24mpg.

[L0oniX]

12. DOH !

[aspergris]

14. i heard they are ramping up production

of the "cotton gin" as well.

and equipping their executive with them newfangled fountain pens to replace quilled pens and inkpots!

[gratuitous]

17. So the terrorists have won, after all

Shit, if I can't trundle my fat ass to work in my Chevy Subdivision and let it sit in the basement parking garage for eight hours every day, and then drive it home with a million other yahoos crawling along in bumper-to-bumper traffic, there's just no reason to get up in the morning.

Damn you Osama!