NEW YORK (AFP) — General Motors said Tuesday it was launching a new series of environmentally friendly vehicles including an electric vehicle for the US market and closing four truck plants.
GM, the world's largest automaker, said it was undertaking a range of strategic initiatives "to aggressively respond to growing demand for fuel-efficient vehicles and to economic and market challenges in North America."
Rick Wagoner, chairman and chief executive of the struggling auto giant, made the announcements at the GM annual meeting of stockholders in Wilmington, Delaware, explaining the shift in focus to compact cars and crossover vehicles, sport utility vehicles (SUVs) built on car platforms, and away from trucks and SUVs, where domestic demand has waned because of high gasoline prices.
"We are making a number of important announcements today, covering everything from product and technology investments to capacity adjustments to a strategic review of our Hummer brand," said Wagoner in a televised news conference that was followed by a news release.
"These moves are all in response to the rapid rise in oil prices and the resulting changes in the US, changes that we believe are more structural than cyclical."
He continued: "While some of the actions, especially the capacity reductions, are very difficult, they are necessary to adjust to changing market and economic conditions and to keep GM's US turnaround on track and moving forward."
Wagoner said the affected plants -- which build pickups, SUVs and medium-duty trucks -- are located in Oshawa, Canada; Moraine, Ohio; Janesville, Wisconsin; and Toluca, Mexico.
He also said GM is reviewing its strategic options for the gasoline-guzzling Hummer truck brand, including a possible sale.
GM expects to see additional structural cost savings of more than one billion dollars by 2010 for its North America operations from the moves.
The automaker's board has also approved funding for the Chevrolet Volt extended-range electric vehicle, Wagoner said. The company will also launch a new global compact car program for the Chevrolet brand, including a next generation for its Aveo model and the introduction of a high-efficiency engine module for the US market.
The company is adding third shifts for production of its Chevy Malibu, Chevy Cobalt and Pontiac G6 models at two separate plants in Michigan and Ohio.
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