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11:06 p.m. EDT, June 09, 2009
GM, merely one week after filing Chapter 11, is moving rapidly to dump unprofitable assets, including its medium-duty trucks, the Chevy Kodiak and GMC Topkick. According to the Detroit News, the automaker has had no success in attracting buyers for its mid-level commercial vehicles despite four years of effort. It will now stop activity at its Flint plant and offer either transfer or buy out for 398 GM workers.
The increase in fuel prices and the drop in home construction since last year have decimated the market for the primarily commercial truck line, which includes dump trucks and other cargo-carrying vehicles. Approximately 22,000 vehicles were produced annually at the Flint facility. GM is quickly turning its efforts toward the expanding hybrid and plug-in electric vehicle market.
In a move intended to open new industries in Michigan, GM President and CEO Fritz Henderson announced that they will be constructing a 33,000-square-foot testing facility at GM's Technical Center for battery development for the new Chevrolet Volt and other electric vehicles. Nearly 1000 engineers and researchers will occupy the plant to improve lithium-ion and nickel-metal hydride battery technology.




