On Tuesday, June 3, General Motors announced plans to close four plants that produce trucks and SUVs, acknowledging consumer demand for fuel efficient vehicles and the long-term likelihood of continued high gasoline prices.

In an article for CNNMoney, Chris Isidore called the forecast of continued high oil and gas prices "a stunning admission from the nation's largest automaker." GM, long dependent on trucks and SUVs as profit-making products, now sees no way to improve its financial standing by adhering to that position.

Rick Wagoner, chairman and CEO of GM, spoke at a news conference in Wilmington, Del. and outlined the company's intention to increases its offerings of fuel-efficient vehicles including the Chevrolet Volt that will have a gas-free range of 40 miles. The Volt, which Wagoner called "an important investment for the future of our company" is predicted to be in showrooms by the end of 2010.

Plants in Moraine, Ohio and Janesville, Wisconsin are on the list to be closed, as are facilities in Oshawa, Canada and Toluca, Mexico. The plants in question produce vehicles including the Chevrolet Trailblazer, Tahoe, and Suburban and the GMC Envoy and Yukon. Each employs approximately 2,500 workers.

In his remarks Wagoner said, "These higher gasoline prices are changing consumer behavior and rapidly. We don't think this is a temporary spike or shift. We think its permanent." Additionally, Wagoner indicated GM may sell its Hummer unit.