06/03/2008, 8:39 AM

Chevrolet News

GM announces closure of four truck plants

GM CEO Rick Wagoner this morning announced the closure of four major truck plants, significantly reducing the company’s ability to manufacture large SUVs and pickups. The affected plants are the Oshawa, Morraine, Lordstown, and Toluca plants. Wagoner also said GM would add a shift at the Lordstown compact car plant next year. Employees at the facilities were notified of the changes this morning.

The Oshawa, Ontario truck plant, which is one of the several North American plants that builds the Chevrolet Silverado and GMC Sierra pickups, will close its doors by September of 2009. The plant is located directly beside the facility that will build the 2010 Camaro and other Zeta-platform cars. The Toluca, Mexico plant, which also builds the Silverado and Sierra, plus the GMC Kodiak ‘monster’ truck, will also close by the end of this year.

The Morraine, Ohio plant, which builds the Chevrolet Trailblazer, GMC Envoy, and Saab 9-7X, will shut down by 2010 or sooner if the market demand calls for it. The three vehicles built there are already slated for discontinuation, and this move gives us a clearer timeline.

The Janesville, Wisconsin facility, which builds the Chevrolet Suburban, Tahoe, and GMC Yukon will cease production by the end of 2009. The Yukon will be discontinued entirely, while the Suburban and Tahoe will continue to be built (in smaller numbers) at the Arlington, Texas plant.

Trucks, SUVs and crossovers were traditionally big money makers for car manufacturers, and while this newest move is a necessary one for GM, it is likely to have big consequences for the one-time world’s biggest automaker.

The Lordstown facility, which is gaining a shift, currently makes the Chevrolet Cobalt and Pontiac G5. The additional capacity will make room for the yet-to-be-named ultra-efficient global compact car from Chevy. Wagoner said it will get 9 mpg more than Chevy’s entry level car, likely referring to the current Aveo. The next generation Aveo will have segment-leading fuel economy as well, and be based on the same global platform.

 
 

06/03, 8:47 AM

posted by:

HemiRoadRunner

I’d like to know what this “ultra-efficient” global compact car is. Where are the LLN “spies” when you need them? I guess they just spy on the obvious.

06/03, 8:52 AM

posted by:

carbonsigma

So that means no more trucks at all from GM? That’s drastic…

06/03, 8:58 AM

posted by:

carstuff

There are still lots of truck plants at GM.
..
They cut 3rd shift at two plants and closed 2 regular duty large truck plants. Also shut down the Mexico plant building Medium duty. Also will close the plant building the Trailblazer which will/is be replaced by the Lambdas.
..

I think in 1-2 years we will see the 3rd shifts put back on the truck plants once the economy gets going again.

06/03, 8:59 AM

posted by:

Astonman12

Yea I dont get that, are they completely closing the truck plants or just ceasing production of them for a while?

06/03, 9:06 AM

posted by:

oldraven

There are still trucks being built in Flint, Fort Wayne, & Pontiac. Not to mention the GMT-900 SUV plants. With those soon going Unibody (it’ll happen) there is potential for those to make pickups.

06/03, 9:07 AM

posted by:

xyunya

There are trucks build in Canada and Mexico (major parts). There is no shortage of trucks: there is no demand for trucks.

06/03, 9:11 AM

posted by:

carstuff

Uh, there is still plenty of demand for trucks. Just less than the 50% penetration last year. Trucks still sell over 45% in US. Many are now Crossovers but still over 2 million framed trucks still selling per year.

06/03, 9:29 AM

posted by:

renzogtr

Do you think that predicted sales will match that this year with the price of Fuel? Have not doubt that there is plenty of demand the question is will buyers be able to afford it?

06/03, 9:35 AM

posted by:

xyunya

GM management (and board of directors) are not known for good market and trend analysis. They started plants shutdown when blind man could see writings on the wall. Did anyone drove recently pass GM, Ford, Chrysler dealership? We can invade another country with all those trucks sitting collecting dust on dealer lots. Drive by Toyota, Honda, Nissan and attempt to purchase not overloaded with “dealer” options Prius, Civic, Versa. Have fun with social experiment.

06/03, 10:10 AM

posted by:

johnnycanuck

‘The Heartbeat of America’ apparently forgot to check for a pulse some time ago.

06/03, 10:23 AM

posted by:

xyunya

The heart looks OK (for now) it is the grey matter that is not firing neutrons.

06/03, 11:07 AM

posted by:

F451

Outside the door, Wagoner closed four more,
what a drag it is getting old.
.
Things are different today,
I hear every CEO say…

06/03, 11:08 AM

posted by:

Fletch

The writing was on the wall when we saw $2/gallon gas in 2004. Now it’s too late and the big 3 are bleeding badly.

06/03, 11:08 AM

posted by:

A4

WTF? They are getting rid of the Yukon? Last i checked Denali’s sold pretty damn well…

06/03, 11:19 AM

posted by:

xyunya

Yes it did in Russia, Saudi Arabia and Venezuela.

06/03, 11:24 AM

posted by:

61Vette

It’s not only GM and Ford that didn’t see the “trend.” Want to explain the Toyota truck plant in SanAntonio? EVERY dealership has trucks lined up, not just the selected GM and Ford lots.

If gas prices weren’t so high, trucks would still be selling at the rate they were 3 years ago. The average public didn’t start to buy little cars b/c they saw the “trend.” They started buying them b/c of gas prices.

Manufacturers build what they can sell. As of 2 years ago they could sell lots of trucks. Now they are moving towards something smaller. It’s not a conspiracy. It’s business. Some companies are obviously moving slower than others (GM,Ford) and others want you to believe they were small all along when in fact they were trying to enter the truck market to reap the rewards also (Toyota).

06/03, 11:30 AM

posted by:

Fletch

Good point 61, I do give credit to Honda for starting small and staying small. Although they did give big a try with that pseudo truck Ridgeline, they never built a body on frame.

06/03, 11:32 AM

posted by:

xyunya

61Vette, if my mother-in-law had 2 more tits, I would not need to buy milk :) . Toyota got greedy and got burned as well as Nissan and even Honda (but not to such a degree). However, all those companies did not stop producing cars, GM practically did (in US). Except HHR there were no new US models in last 7-8 years.

06/03, 11:33 AM

posted by:

DeansterTJ

Damn, here comes the recession

06/03, 12:25 PM

posted by:

400horseSS

Wow President Bush’s war has more than just got innocent people killed, its killed our economy, thank you Mr. President.

06/03, 12:26 PM

posted by:

tripleonefive

Why doesnt GM close some of the plants that they moved to Mexico ???
Its so funny how idiots on this board have allegience to GM out of “nationalsim” but dont realize that GM closed plants in the US in the 80’s when they were profitable and moved them to Mexico, leaving americans jobless
Meanwhile Honda and Toyota are designing and building cars in the US and they really dont have to and shouldnt in my opinion
American should bow down and thank Honda and Toyota for making the vehicles they do where they do

06/03, 12:35 PM

posted by:

inline6

xyunya,

No new GM cars in the last 7-8 years?

Cobalt - 2005
HHR - 2006
Aveo - 2004
Malibu - 2004, 2008
G5 - 2007
Vibe - 2009
Solstice - 2006
G6 - 2005
Ion - 2003
Astra - 2008
Sky - 2007
Aura - 2007

I count 12 new cars in the last 6 years.

Oh, and 1115, the Toluca plant IS IN MEXICO. If you read the article, you find all sorts of things, especially information!

06/03, 12:43 PM

posted by:

carstuff

What plants do you think GM has in Mexico that imports vehicles into the US? They did announce one plant closing. That leaves 2 more. One builds trucks and the other HHR’s. Does not seem like very many assembly plants for all the business they do there.

06/03, 12:44 PM

posted by:

Fletch

400, I’m intersted in your point of view on how foreign wars have ruined our economy. Certainly we would all agree that the wars have been extrememly expensive driving the US’s deficit up and up. I would agree that the wars have weakened the dollar.

I would also say that the lack of a US energy policy has forced us to import the majority of our oil. A global economy has exposed our unskilled workforce as overpaid. Big banks, lenders and financial institutions took advantage of selling cheap money that is currently haunting the housing and credit industry.

06/03, 1:34 PM

posted by:

tripleonefive

Inline3 The point was that they closed plants in the US and MOVED THEM TO MEXICO !!!
Great for the people that lost their jobs and great for the people in Ohio Wisconsin and Texas
Keep believing in GM Ill continue to buy foreign

06/03, 1:35 PM

posted by:

injunraiv

“American should bow down and thank Honda” LOL No, you’re not an import humper… [/sarcasm]

Seriously folks, anyone think this is a bad move? It seems the UAW tail is no longer wagging the GM dog…

06/03, 1:50 PM

posted by:

400horseSS

What does a skilled or unskilled work have to do with gas prices, if we all had useless colege degrees these jobs would still be leaving the US, thats my point, degrees are useless most of you are too bitchified to say it.

06/03, 2:14 PM

posted by:

carstuff

1115, did you read what I said above??? GM had 3 assembly plants in Mexico that exported vehicles to the US. Now they will have 2. Do you really think GM has closed that many plants and opened up new ones in Mexico? GM has over 20 plants in the US. Seems like 2 in Mexico would not be that much of an issue. They are our trading partners.

06/03, 2:29 PM

posted by:

Fletch

My point was that the current weak US economic climate is due to several factors, not just an ongoing war.

The fact that you do not see the importance of advanced education speaks volumes.

06/03, 2:53 PM

posted by:

Jordan

discontinuing the yukon? that’s the gmt-900 i see the most around here…

06/03, 3:26 PM

posted by:

400horseSS

So Fletch seeing that engineers and lower management have so-called degrees that prevents them from losing their jobs too, the fact that you dont know **** about how this auto game works speaks volumes.

06/03, 3:28 PM

posted by:

400horseSS

You need to take a field trip to the unemployment office and see your people with college papers in their back pockets.

06/03, 4:10 PM

posted by:

injunraiv

“What does a skilled or unskilled work have to do with gas prices” 400, if that was directed at my comment you misunderstand my point. BTW, I agree w/ you that it’s not the UAWs fault that gas prices are so high, but 5 years ago GM would have had to keep the plants open anyway. Overall, this is good for the whole industry in the long term. Sucks for the troops today, though…

 
 
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