General Motors has announced they are increasing small car production in Michigan and Ohio, at plants that make the Chevy Malibu and Pontiac G6 and the Chevy Cobalt and Pontiac G5, to keep up with increased consumer demand of small and mid-size cars.
GM also said they will shut down four truck plants, in Canada, Ohio, Wisconsin and Mexico.
One plant will stop making the Chevy Silverado and GMC Sierra in 2009, while another that makes the Chevy TrailBlazer, GMC Envoy and Saab 9-7x, will end production at the end of the 2010 model run, or sooner, if demand dictates. A Wisconsin plant will cease production of medium-duty trucks by the end of 2009, and of the Tahoe, Suburban and Yukon in 2010, or sooner, if market demand dictates. Chevrolet Kodiak medium-duty truck production will also end in Toluca, Mexico, by the end of this year.
GM expects these actions will save more than $1 billion by 2010 and plans to have to work with unions to handle even more layoffs, due to “long-term changes in consumer demand for trucks and SUVs.”
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