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GM Trades Trucks for Hybrids

Chevy Volt remains a high priority

Charles J. Murray, Senior Technical Editor -- Design News, June 3, 2008

General Motors Corp. said today it plans to close four North American plants that build trucks and SUVs, but added it will continue its commitment to planned fuel-efficient vehicles, such as the Chevy Volt and Saturn Vue Green Line.

The giant automaker said it would cease production at existing SUV plants in Janesville, WI and Moraine, OH in 2009 and 2010. It also plans to close truck assembly plants in Oshawa, Ontario and another in Mexico.

“The plant closures are directly related to the changing tastes for vehicles,” said Rob Peterson, a GM spokesman.

Peterson added high oil prices are boosting consumer interest in vehicles such as the Volt, the plug-in hybrid now targeted for a 2010 introduction. “The Volt’s business case went to the (GM) board, and the board approved it,” Peterson told Design News.

Plans are for the Chevy Volt to attain extraordinarily high gas mileages, possibly as high as 150 mpg. As a so-called “plug-in hybrid,” the Volt would use lithium-ion batteries to reach a pure electric range of approximately 40 miles and then would employ an on-board internal combustion engine to recharge the batteries and boost its range to more than 400 miles.

GM indicated rising gasoline prices are inducing consumers to look at vehicles like the Volt instead of SUVs and light trucks.

“We expect the demand for gasoline to keep the cost of oil high,” Peterson said. “No one seems to be seeing a significant sustained dip in fuel costs.”

Later this year, GM will also introduce a front-wheel-drive Saturn with a two-mode hybrid drivetrain that could boost fuel efficiency by as much as 45 percent. Plans for that vehicle remain intact, Peterson said. 

At the same time, the giant automaker announced it is launching a review of its Hummer brand, which could lead to changes of sale of the brand.

GM said all the moves announced today are simply an adjustment to widespread changes in the market. “We’re aligning our business with what the market is telling us,” Peterson said.

Over the hill? Trucks and SUVs, such as GM’s Hummer, are struggling.
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