Detroit, Michigan – General Motors has announced it will reduce the number of full-size trucks it builds, to bring production in line with market demand, and explore options to expand its car production. The company will eliminate one shift of production at its truck assembly plants in Oshawa, Ontario, and in Pontiac and Flint in Michigan, along with a full-size SUV assembly plant in Janesville, Wisconsin.
Under the plan, the company will remove approximately 88,000 full-size pickups and 50,000 full-size SUVs from its North American production capacity for the remainder of the 2008 calendar year. The shifts will be eliminated on July 14 at the U.S. plants, and on September 8 at the Oshawa plant.
“With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities,” said Troy Clarke, President, GM North America. “This is a difficult move, but we remain committed to retaining and growing our leadership in the full-size truck market.”
Clarke noted that with the market shifting to cars and crossovers, GM is seeing strong sales of its Chevrolet Malibu, Impala and Cobalt, Cadillac CTS, Pontiac G6, Buick Enclave and GMC Acadia. He added that the company is continuing to explore options to increase car and crossover production, but there are no changes to car production at this time.
Details of lower staffing requirements at the plants will be worked out with the UAW and CAW over the next several weeks.