GM Turnaround Plan: Hummer for Sale and Production Cutbacks

Robert Farago
by Robert Farago
gm turnaround plan hummer for sale and production cutbacks

The Detroit News is reporting GM CEO Rick Wagoner's new new turnaround plan. As expected, The General is cutting back SUV and truck production in a BIG way: "phasing out" Oshawa, Ontario (2009); Moraine, Ohio (2010 or sooner); Janesville (end of 2009) and Toluca, Mexico (end of this year). At the same time, GM's ramping-up production– adding a third shift– at Lake Orion (Pontiac G6 and Malibu sedans) and Lordstown (Chevy Cobalt and Pontiac G5). And here's a surprise: Wagoner said GM is "exploring all options, including the possible sale of its Hummer brand." To whom? In other product news, GM said it was abandoning plans to build an entry-level Cadillac and will instead create an S-Class killer to replace it's ancient, arthritic STS. Just kidding. The company will build a new Chevy compact car at Lordstown (as reported yesterday). The DetN also reports that GM promises a "world car" replacement for the Chevy Aveo to go on sale in the U.S. in the second half of… 2010. Full Death Watch analysis to come, after the real news: GM's May sales results.

[ GM press release here.]

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4 of 37 comments
  • Cos999 Cos999 on Jun 03, 2008

    MIKEY's insights are a must read for me. The most recent was a sobering one: "If Buzz hasn’t traded them away I have bumping rights. The guy I displace goes to the line. Its not a good way to make friends,but you gotta do what you gotta do.It comes down to him or me." Wow..... Any organization that rewards employees for seniority and not skill/production is doomed to fail over the long term. Steel, airlines, now transportation. What is next up, civil servant and teachers unions? Hopefully GM senior management gets their turn next. Welcome to a brave new world. You get paid what you are worth.

  • 50merc 50merc on Jun 03, 2008

    To make an informed call about selling Hummer, we'd need to know the finances. If Hummer is a fiscal disaster like Saturn, then liquidating the brand might be the logical thing to do. But if Hummer in the right hands could be viable, then a buyer might materialize. In addition to the Urban Rambo types, there may be a considerable market for Hummers among such people as forest rangers and Middle Eastern sheiks.

  • Robert Farago Robert Farago on Jun 03, 2008

    We now have it on good authority: Hummer's dead. As in shuttered. No sale. No nothing. Gone.

  • 50merc 50merc on Jun 03, 2008

    If they can bring themselves to kill Hummer, how in the world can they rationalize keeping Saturn on life support? Even the refreshed lineup has posted miserable sales.