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GM Takes Further Production Cuts
02:19 p.m. EDT, July 29, 2008

On Monday, July 28, General Motors announced further production cuts totaling 117,000 vehicles due to decreased consumer demand, particularly for trucks and SUVs.

The lower production levels will be accomplished by eliminating a shift each at plants in Shreveport, Louisiana and Moraine, Ohio, thus lowering the company's inventory of the low selling form factors.

The facilities in question manufacture the Chevrolet TrailBlazer, GMC Envoy, Buick Ranier, Isuzu Ascender, Saab 9-7x, GMC Canyon, Chevrolet Colorado, and Hummer H3.

For the year, GM has reduced its total production by 300,000 units and is considering idling other plants making trucks and SUVs later in the year. The company's sales have fallen 16% for the first quarter, a pinch being felt by all automakers.

Toyota, which outsold General Motors by 277,532 unit globally in the first six months of 2008 has reduced its global forecast by 350,000 vehicles and is also making the shift away from trucks and SUVs to smaller, more fuel-efficient cars.

Soaring gasoline prices in tandem with an economy weakened by inflation and the mortgage crisis have served to weaken consumer demand as Americans try to curb their spending, increase the fuel economy of their vehicles, and to address growing environmental concerns. Consequently, compacts and hatchbacks are returning to showrooms and hybrids and alternative-fuel vehicles are enjoying brisk sales.


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