GM Announces Major North American Restructuring

In order to keep its North American operations profitable going into the future, General

Motors announced a new restructuring plan today, which involves scaling back on its SUVs and pickup trucks and putting more emphasis on economical, fuel-efficient compact cars.

A total of four plants will be shut down by the end of the decade, including Moraine, which builds the GMT360 SUVs (TrailBlazer, Envoy, 9-7x) by 2010; Oshawa, which builds the GMT900 pickups (Silverado, Sierra) by 2009; Toluca, which builds the medium-duty trucks such as the TopKick and Kodiak, and Janesville which produces GMT900 SUVs (Yukon, Yukon XL, Tahoe, Suburban).

The news is particularly difficult for those who work at the Oshawa plant, building the Silverado and Sierra, as less than twenty days ago the CAW and General Motors reached an agreement that would see the truck plant continue

operations, in hopes that the production of the Silverado and Sierra Hybrids would boost sales. In total, across all plants the closures will affect an estimated 10,000 jobs.

GM is also overviewing the Hummer brand; options include revamping the product lineup, or partial or even the complete sale of the brand name.

Countering the world of the plant closure, GM confirmed the Chevrolet Volt for production, which will occur at the Hamtramck, Michigan facility. Chairman Rick Wagoner also spoke of North America receiving a global compact car, the next-generation Aveo, as well as a new line of ultra-efficient engines. In addition, production at the automaker's Lordstown and Lake Orion plants, which produce GM's domestic compact and midsize sedans, will see an additional shift added to meet increased demand.