Soaring fuel prices and growing environmental concern among consumers have pushed General Motors to significantly scale back production of trucks and sports utility vehicles (SUV) as it shifts towards low emission cars.

The company has confirmed that it is to close production plants in Moraine, Ohio and Janesville, Wisconsin in the United States as well as its operations in Oshawa, Canada and the Mexican city of Toluca.

In a statement released by GM, it explained that it was making the move in order to save an estimated $1 billion a year from 2010 and to "aggressively respond to growing demand for fuel-efficient vehicles and to economic and market challenges in North America".

One of the reasons cited for GM's combined $51 billion loss over the past three years is the continuing decline in sales of its world-famous Hummer vehicle, with some observers believing that, given the global trend towards fuel-efficient hybrids and small cars, the company will now struggle to find a buyer should it wish to offload the brand.

At the same time, GM has also approved production of its new Chevy Volt electric vehicle in its home city of Detroit as it looks to boost its shares, which have fallen in value by as much as 60 per cent since a peak in October last year.



Source:

GM axes four SUV and truck plants
http://news.bbc.co.uk/1/hi/business/7433656.stm