"a structural change, not just a cyclical change"
GM to Close Four Truck Plants, Shift Output to Cars
Excerpt:
Gasoline exceeding $4 a gallon represents ``a structural change, not just a cyclical change,'' Rick Wagoner, chief executive officer of the largest U.S. automaker, told reporters today before its annual shareholders' meeting in Wilmington, Delaware.
The four plant closings will save $1 billion annually and cut North American capacity by 700,000 for trucks and, with added shifts at car factories, by 500,000 overall, he said. At Hummer, ``we're considering all options from a complete revamp to a partial or complete sale of the brand,'' Wagoner said.
A doubling of U.S. gasoline prices since 2004, including a 31 percent surge this year, is forcing Wagoner to accelerate production of more fuel-efficient vehicles as he tries to end three years of losses. Cars will account for 60 percent of Detroit-based GM's North American production in three years, up from about 50 percent now, he said.
``It is significant, but this is a late reaction to changing market dynamics,'' said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan. ``The plans really should have been in place a number of years ago.''
Comment: When we moved to Plymouth 12 years ago (12 years ago this week!), gas was under $ 1.00 a gallon. Four years ago $ 2.00 per gallon. Now $ 4.00 per gallon. This acceleration of fuel cost increases will force a huge "structural change" on our economy: where we live (closer to work), worship (closer to church), the car we intend to buy the next time. Re cars: I doubt I would buy a 240 HP Impala the next time. Perhaps the next time will be a 4 cylinder Malibu.
More on the "wayback machine". When I started driving (1965) gas was in the 20-25 cent a gallon range.
Excerpt:
Gasoline exceeding $4 a gallon represents ``a structural change, not just a cyclical change,'' Rick Wagoner, chief executive officer of the largest U.S. automaker, told reporters today before its annual shareholders' meeting in Wilmington, Delaware.
The four plant closings will save $1 billion annually and cut North American capacity by 700,000 for trucks and, with added shifts at car factories, by 500,000 overall, he said. At Hummer, ``we're considering all options from a complete revamp to a partial or complete sale of the brand,'' Wagoner said.
A doubling of U.S. gasoline prices since 2004, including a 31 percent surge this year, is forcing Wagoner to accelerate production of more fuel-efficient vehicles as he tries to end three years of losses. Cars will account for 60 percent of Detroit-based GM's North American production in three years, up from about 50 percent now, he said.
``It is significant, but this is a late reaction to changing market dynamics,'' said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan. ``The plans really should have been in place a number of years ago.''
Comment: When we moved to Plymouth 12 years ago (12 years ago this week!), gas was under $ 1.00 a gallon. Four years ago $ 2.00 per gallon. Now $ 4.00 per gallon. This acceleration of fuel cost increases will force a huge "structural change" on our economy: where we live (closer to work), worship (closer to church), the car we intend to buy the next time. Re cars: I doubt I would buy a 240 HP Impala the next time. Perhaps the next time will be a 4 cylinder Malibu.
More on the "wayback machine". When I started driving (1965) gas was in the 20-25 cent a gallon range.
Hummer & image above from GM to close 4 truck plants, may sell or close HUMMER
Updated (More on this "structural change"): Honda Civic, Toyota Camry and Corolla all outsell Ford F-150 for the first time
Excerpt:
... after 17 years worth of being this country's best-selling vehicle, the Ford F-150 full-size pickup (42,973) has fallen for the first time to fourth place behind the Toyota Camry (51,291), Corolla (52,826) and your new best-selling vehicle in the U.S., the Honda Civic (53,299). Note to automakers: that would be the sound of the canary in your coal mine hitting the floor.
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