29th April 2008

GM Cuts Truck Production, Big Style

posted in Car News Articles |

The Detroit News reports that GM will be cutting one shift from its Flint, Pontiac, Oshawa, Ontario, and Janesville, WI factories by July 14. The slashing eliminates some 3,500 jobs from GM’s North American workforce. The move eliminates produciton of some 50k body-on-frame vehicles– which have already fallen 100k due to the ongoing American Axle strike. Analyst Joe Phillippi of AutoTrends Consulting says this is gonna leave a mark. “These are the most profitable things they make, and losing those profits is going to hurt for the next three quarters.” Still, there’s no point in building ‘em if nobody wants to buy them; GM has seen a 17 percent decline in pickup sales and a 29 percent drop in large SUVs in the first quarter of this year. Sure, cutting makes the powerless feel like they’re in control, but until GM goes “down the road, not across the street,” expect the misery and moodiness to continue.

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