General Motors Shifts Production to Small Cars, EV’s and Hybrids
August 28, 2008 by admin
GM Closing 4 Trucks and SUV Plants, Betting More on Smaller Cars
The latest statistics from the Federal Highway Administration show that Americans are driving less. They are also buying smaller cars as the transportation sector shifts into a different gear. This is particularly obvious in the US where fuel prices have been relatively low compared to most of the rest of the world for a long time.
Another big sign of this changing world is GM’s announcement that it will close four big SUV manufacturing plants and is thinking about selling its ailing Hummer brand.
The company doesn’t seem to be burying its head in the sand either: “We don’t believe it’s a spike or a temporary shift. We believe it is, by and large, permanent,” said GM chairman Rick Wagoner.
Over all, G.M. will reduce its North American production to 3.7 million vehicles from 4.2 million. The moves should add $1 billion in cost savings to an existing target of reducing costs by $5 billion by 2011.
New Investment in plug-in hybrids and electric cars
GM isn’t just cutting costs. It’s also going to invest more in its passenger cars and “crossover” vehicles. One of these new passenger cars is a Chevrolet with a turbo 1.4 liter engine — it’s been a while since GM has even looked at such small displacement.
Mr. Wagoner also mentioned that the plug-in series hybrid Chevy Volt would be available for sale “no later than the end of 2010.” Lets hope that’s true, because with a 40 miles (65 km) all-electric range, this car would be among the most fuel efficient on the market and could show other automakers that it is worth it to invest in plug-in hybrids.
Despite it’s mistakes and financial problems, GM is still an industrial giant and will be making a large portion of the cars sold in the future. We want to see GM make cars that are as efficient as possible, and work on R&D for plug-in hybrids and electric cars, so let’s give them credit for making a step in the right direction.
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