GM to discontinue Hummer brand? And close more plants

Now surely there a vehicles much more fuel efficient than the Hummer H2 right? Of course. So many in fact that we haven't seen an H2 actually driving on the road in well over 3 weeks. I caught wind of this little quote in an article released by the Associated Press this morning. GM CEO Rick Wagoner has announced the closing of 4 more GM plants in the United States and Mexico.

This is in efforts to save GM an additional $1 billion a year by 2010. By 2010 GM is hoping to have cut costs by $15 billion a year. The plants affected are Oshawa, Ontario; Moraine, Ohio; Janesville, Wis.; and Toluca, Mexico. The closing of these plants eliminates 2500 jobs, but in an act of good faith. They can return later this year thanks to 19,000 buyouts and early retirments that will leave towards the end of 2008.

Now what caugt me, was the mention of GM discontinuing the Hummer brand. It's mentioned by GM, but is not quoted anywhere in the article by Rick Wagoner. Of course it's no surprise since gas is nearly $5 a gallon in parts of the country. And the shift to smaller, economical cars is permanent said Wagoner.

But what about Hummer? You'd figure if the CEO actually dropped this bomb in an interview with MSN that there would be a quote in there somewhere outlying the fate of Hummer. So who knows how much truth there is to the article other than the plant closings, confirmation of high gas prices, and yet another confirmation that we'll see the Chevy Volt in 2010. We'll keep following this one til we get some answers. In the meantime, here's the article. Read it and draw your on conclusions as to how AP missed this one.

Source: MSN

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Chrysler announces cutback in truck produttion. You're move GM

Following both General Motors and Ford, now Chrysler is going to shut down their truck plants for a while. Effective this month, Chrysler LLC is going to temporarily close their Warren, The Jefferson North Assembly and Windsor Assembly plants.

The Warren plant that assembles the Dodge Ram and Dakota pickup trucks will be closed the longest, from December 21 to February 4. Jefferson North, home of the Jeep Grand Cherokee and Commander SUVs, will close for three weeks starting January 4, 2008. That plant will also lose 911 workers, and will lose its second shift as of February 4. The Windsor plant, in Ontario, Canada, which builds the Chrysler Town & Country and Dodge Grand Caravan, will close January 14 for two weeks.

Source: Automotive News.

Ford idles truck and SUV plants

Following the lead from General Motors, Ford today has ceased production at their F150 Dearborn, Mi factory(the famous Rouge factory) along with the Louisville, Ky factory that produces the Explorer. It is unclear as to how long the factories will remain closed.

Sales of both models have continued to fall this year. F150 sales are 12.4% below 2006 figures. The Explorer is at 23.5% vs. 2006. The closings give ford a combine 10,450 units per week lost for the F150 and Explorer.

Ford exec Mark Fields said in a related article in the Detroit News that the Ford Motor Company is expecting a rough 2008 as car sales in the U.S. continue to decline. Fields asked and answered his own question, saying, "Do I think it's going to be Armageddon? No." He continued by saying that Ford will take the coming year on a month-to-month basis in order to "manage the business appropriately."

Source: Automotive News, Detroit News.

Volkswagen hunting for North American factory

This has been in the rumormill for a few months now. Finally we have some inside news as to the possibility of a new VW factory in the United States. According to Automobilwoche, a German sister magazine to Automotive News. In an interview with VW production chief Jochem Heizmann, "Our scouts are looking full speed in Mexico and the United States."

Sounds pretty strong for a company that did not know if they were going to try another U.S. factory a few months ago. Insiders at VW are looking strongly at the southeastern U.S. for a plant location. VW current North American factory in Pueblo, Mexico is currently nearing on their full capacity of 450,500 units for this year. The plant currently produces the New Beetle and Jetta models. Pueblo was also the last factory still producing the original air cooled Beetle which ended production in 2003.

As part of Volkswagen's Strategy 2018. A new U.S. assembly plant would help to boost VW U.S. sales to 800,000 units a year. Up from 329,112 U.S. sales in 2006.

Volkswagen's last try at a U.S. based factory was from 1978-1988 in Westmoreland County, Pennsylvania.

Source: Automotive News