CEO of General Motors, Richard Wagoner, announced today that the company will shut down four North American plants in a movement to shift production away from pickups and SUVs to smaller, more fuel-efficient vehicles. Wagoner said that the plan comes in response to a rapid change in consumer behaviour behaviour in connection with rising fuel costs, a trend that he is not expected to reverse soon.
GM's total production capacity will drop-500000 vehicles, with reductions of 700000 lorry 200000 displaced by an increase in the unit more fuel-efficient cars. The trend towards fuel consumption is the Chevy Volt, a broader range of plug-in automobile Wagoner assured that the public remains on schedule for a release in 2010. "We believe this is the biggest step in our industry to move away from our historic, almost total dependence on oil to power vehicles," he said.
For years, critics and shareholders have blasted GM for a failure to adapt to rising fuel costs and the growing consumer demand for more environmentally responsible vehicles. Until now, GM has sold only a few thousand hybrid vehicles, sales of the Toyota Prius recently crossed the one million mark. Today's announcement leaves no doubt that GM received the message with the company even considering the sale of his infamous Hummer brand. Investors reacted this morning by pushing stock prices by almost 3 percent to the message.
GM's total production capacity will drop-500000 vehicles, with reductions of 700000 lorry 200000 displaced by an increase in the unit more fuel-efficient cars. The trend towards fuel consumption is the Chevy Volt, a broader range of plug-in automobile Wagoner assured that the public remains on schedule for a release in 2010. "We believe this is the biggest step in our industry to move away from our historic, almost total dependence on oil to power vehicles," he said.
For years, critics and shareholders have blasted GM for a failure to adapt to rising fuel costs and the growing consumer demand for more environmentally responsible vehicles. Until now, GM has sold only a few thousand hybrid vehicles, sales of the Toyota Prius recently crossed the one million mark. Today's announcement leaves no doubt that GM received the message with the company even considering the sale of his infamous Hummer brand. Investors reacted this morning by pushing stock prices by almost 3 percent to the message.
