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| Version 2 | Version 3 |
|---|---|
| GM axes four SUV and truck plants | GM axes four SUV and truck plants |
| (about 3 hours later) | |
| General Motors is closing four truck and sports utility vehicle (SUV) plants in the US, Canada and Mexico as it looks to environmentally-friendly cars. | General Motors is closing four truck and sports utility vehicle (SUV) plants in the US, Canada and Mexico as it looks to environmentally-friendly cars. |
| Recent strikes at some GM factories have dented production of SUVs. | Recent strikes at some GM factories have dented production of SUVs. |
| And surging fuel prices have heralded a shift to smaller vehicles, with GM also considering selling its Hummer brand. | |
| But GM's board has approved production of a new small Chevrolet car at a plant in Ohio and the Chevy Volt electric vehicle in Detroit. | But GM's board has approved production of a new small Chevrolet car at a plant in Ohio and the Chevy Volt electric vehicle in Detroit. |
| Boss Rick Wagoner said plants to be closed were in Oshawa, Ontario, Canada; Moraine, Ohio; Janesville, Wisconsin; and Toluca in Mexico. | Boss Rick Wagoner said plants to be closed were in Oshawa, Ontario, Canada; Moraine, Ohio; Janesville, Wisconsin; and Toluca in Mexico. |
| The world's largest carmaker said it was making the moves "to aggressively respond to growing demand for fuel-efficient vehicles and to economic and market challenges in North America". | The world's largest carmaker said it was making the moves "to aggressively respond to growing demand for fuel-efficient vehicles and to economic and market challenges in North America". |
| Savings target | Savings target |
| GM, which has lost a combined $51bn over the past three years, said it had no plans to allocate products to the four affected plants in the future. | GM, which has lost a combined $51bn over the past three years, said it had no plans to allocate products to the four affected plants in the future. |
| The closures will save the firm $1bn a year from 2010, it said. | The closures will save the firm $1bn a year from 2010, it said. |
| However, Mr Wagoner said GM was not ready to lay out a timetable for returning to profitability. | However, Mr Wagoner said GM was not ready to lay out a timetable for returning to profitability. |
| If they were looking to sell the Hummer brand, the more sensible thing would have been to do it three years ago Peter Jankovskis, Oak Brook Investments | |
| GM shares have lost almost 60% of their value since their peak in October 2007. | GM shares have lost almost 60% of their value since their peak in October 2007. |
| Some analysts said GM had dithered over what to do with the Hummer brand which could be revamped or sold pending a review of its future. | |
| "Unfortunately, it's just a sign that once again they're behind the curve," said Peter Jankovskis, a chief investment officer with Oak Brook Investments, which owns GM shares in some of its portfolios. | "Unfortunately, it's just a sign that once again they're behind the curve," said Peter Jankovskis, a chief investment officer with Oak Brook Investments, which owns GM shares in some of its portfolios. |
| "If they were looking to sell the Hummer brand, the more sensible thing would have been to do it three years ago," he added. | "If they were looking to sell the Hummer brand, the more sensible thing would have been to do it three years ago," he added. |
| "They're not going to get anything for it. Just in terms of timing, it's a very poor example." | "They're not going to get anything for it. Just in terms of timing, it's a very poor example." |