GM may drop Hummer

[RGFan]

Do not know how this will effect RGM or the Hall family, definetely not good.

GM to close 4 factories, may drop Hummer
Automaker to curtail truck, SUV production amid soaring fuel prices
Hummer H2's are lined up at a dealership in Cranbury, N.J. General Motors is considering dropping the line of rugged SUVs amid slumping sales.

WILMINGTON, Del. - General Motors is closing four truck and SUV plants in the U.S., Canada and Mexico as surging fuel prices hasten a dramatic shift to smaller vehicles.

CEO Rick Wagoner said Tuesday before the automaker’s annual meeting in Delaware the plants to be closed are in Oshawa, Ontario; Moraine, Ohio; Janesville, Wis.; and Toluca, Mexico. He also said the iconic Hummer brand will be reviewed and potentially sold or revamped.

Wagoner said the GM board has approved production of a new small Chevrolet car at a plant in Lordstown, Ohio, in mid-2010 and the Chevy Volt electric vehicle in Detroit.

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Wagoner announced the moves in response to slumping sales of pickups and SUVs brought on by high oil prices. He said a market shift to smaller vehicles is permanent.

The cuts will affect about 2,500 workers at each of the four facilities, although Wagoner did not know exact numbers. Many will be able to take openings created when 19,000 more U.S. hourly workers leave later this year through early retirement and buyout offers.

He said the company has no plans to allocate products to the four plants in the future.

“We really would not foresee the likely prospect of new products in the plants that we’re announcing today that we’ll cease production in,” he told a Moraine, Ohio, city official who asked a question in a telephone conference call.

The moves will save the company $1 billion per year starting in 2010. Combined with previous efforts, GM will have cut costs by $15 billion a year, Wagoner said.

Wagoner said General Motors Corp.’s board approved the production schedule of the Chevrolet Volt, and the company plans to bring the plug-in electric car to showrooms by the end of 2010. The Volt runs on an electric motor and has a small engine to recharge its batteries.

He said the change in the U.S. market to smaller vehicles likely is permanent. “We at GM don’t think this is a spike or a temporary shift,” Wagoner said.

On the Hummer, Wagoner said GM is “undertaking a strategic review of the Hummer brand, to determine its fit with GM’s evolving product portfolio” in light of changing market conditions.

“At this point, we are considering all options for the Hummer brand... everything from a complete revamp of the product lineup to partial or complete sale of the brand,” he said.

The Detroit-based automaker has just emerged from a spate of labor problems, with two local union strikes at key factories and a nearly three-month strike at key parts maker American Axle and Manufacturing Holdings Inc.

GM said in a recent regulatory filing the strikes will cost it a total of $2 billion before taxes in the second quarter.

Detroit’s automakers have been making the shift to more fuel-efficient vehicles, but not at the pace that matches consumers’ drive to hybrids and high mileage models made overseas. Gas prices have accelerated the retreat from trucks and sport utility vehicles, leaving the Big Three at the most critical crossroads in 30 years.

The U.S. market is difficult for every automaker, with consumer confidence weak and 2008 sales expected to be the lowest in more than a decade. But it is most difficult for the Detroit Three, who have relied more heavily on sales of trucks and SUVs than their foreign counterparts. Trucks make up 70 percent of Chrysler LLC’s U.S. sales, for example, compared to 41 percent at Toyota Motor Corp

[RGFan]

This may be a great time for Hummer to start pushing a green initiative,,,,,bio-diesel, propane. With the propane, you still can have the mean V-8 sound, with some but not that much fall off power wise, the nice thing is you can get more aggressive with engine set ups safely to compensate. Bio-Diesel would be cool as well. Stil not as good as the smell of VP exhaust, but the world is changing.

[Next-Gen]

What about this green crude fuel?

http://www.leftlanenews.com/green-crude-fuel-of-the-future.html

[RGFan]

That is some cool stuff. We may not like the fact of companies getting away from our Big block V-8's and the smell of gasoline. But it is already in the works, it is happening. The customers are speaking and the Big 3 have been forced to consider change. I say lets embrace it and lets continue to enjoy racing, the change is going to happen. I am already looking at options for converting my 550 Hp BBC to propane in my boat.

[Bricoop]

I have no worries about RG being able to find a new sponsor, if it comes to that. That car can be retrofitted to fit any manufacturer look-a-like body in no time.

[RGFan]

I have no worries about RG being able to find a new sponsor, if it comes to that. That car can be retrofitted to fit any manufacturer look-a-like body in no time.

Absolutely, been there, done that with the TT and the Cup Cars. I wish they (GM) would make the H3 green friendly (biodiesel, propane, etc) rather then drop the program all together. The Euro's are big on green and what a way to market the program then to have the Monster Hummer with a green powerplant and still kicking arse. I have personally looked into propane power for the 550 hp BBC in my boat....While you lose some power off of the top, you can make up for it with running higher compression then what you normally could with gasolinie efficiently. I just see a real opportunity to market the H3 on an entirely new front....A green friendly high horsepower winning race car/truck. With propane, you still have a loud, obnoxious V8 that sounds exactly the same as a gasoline motor as well

[Samco Fab]

I have total confidence that Rod Hall Racing will race with GM in the future. We give too much engineering feedback , as well as proving that Hummer and GM make a great production off road machine. We could provide just as much feedback if we raced a pickup truck, Hummer, or anything that GM makes.

Mabye we will race a Hybrid gas electric vehicle someday, it would sure test the drivetrain to beat the hell out of it in a desert environment. Change is part of racing.

Watch the video of the GM engineer on our team talks about "why we race". There have been a lot of small changes made to production H2's and H3's directly from racing production racers. We send a lot of take off race parts to be inspected by engineers, anything from differentials, engines, transmissions, suspension links, steering, etc....

We also do a lot of shock testing and tuning with GM engineers, that gives them a lot of data to hopefully put into production.

http://www.youtube.com/user/rodhallracingoffroad

We also win a lot of races:D

I can see the big H2 going away someday:(, but the H3 with the inline 5 cylinder is an economical vehicle to drive. I cant see them doing away with the H3 myself, but I don't have much more inside info than anybody else. FYI, my shop preps the H2 SUT, and GM preps both of the H3's.

[tpatkins]

Drop!...More like "RUN". Federal tax breaks cant even save it now....

[superkart]

We have a new system we will be manufacturing and installing on gas and diesel vehicles in the very near future that will increase mileage by 50% at a minimum and in some cases much more. This systems produces Hydrogen on Demand and it increases engine horsepower and engine life. You fill it up with water. This system will allow any current engine to pass Tier 3 for emissions as a bonus. Yesterday the solution by our government was to drill more oil wells. I guess Bush wants to give one last gift to his oil buddies at the expense of our environment. Drilling more wells will not lower the price of gas at the pump for you or I. If a Hummer got 2 to 3 time the mileage it gets now everyone would be driving one. Our government is only interested in supporting technology where they can collect their cut on each gallon. Putting water in your tank does not interest them. Send us an PM if you are interested in this system for your vehicle.

superkart

[bufeo]

We have a new system we will be manufacturing and installing on gas and diesel vehicles in the very near future that will increase mileage by 50% at a minimum and in some cases much more. .... Send us an PM if you are interested in this system for your vehicle.

superkart

Yes, I'm interested. We own a 2001 V-10 Ford Excursion and a 2001 V-6 Nissan Xterra.

I'll send a PM

Thanks.

Allen R

[Chris Tobin]

This does not look good for Hummer off road teams...

Until now GM said they would be looking at the possibility of selling the Hummer brand... In the report I pasted below, it says they will sell the Hummer brand.:eek:


GM to cut salaried workers, production, dividend
By TOM KRISHER and DEE-ANN DURBIN,AP
Posted: 2008-07-15 09:15:19
DETROIT (AP) - General Motors Corp. said Tuesday it will lay off salaried workers, cut truck production, suspend its dividend and borrow $2 billion to $3 billion to weather a severe downturn in the U.S. market.

GM said the moves will raise $15 billion to help cover losses and turn around its North American operations.

"In short, our plan is not a plan to survive. It is a plan to win," GM Chairman and CEO Rick Wagoner said in a broadcast to employees.

Chief Operating Officer Fritz Henderson said GM wants to reduce its total salaried costs in the U.S. and Canada by 20 percent.

A large chunk of the reduction, he said, would come from cutting health care benefits for salaried retirees. Those people would get a pension increase from the company's overfunded pension fund to help compensate for Medicare and supplemental insurance, the company said.

Several thousand jobs will be cut through normal attrition and retirements, and through early retirement and buyout offers, Henderson said. The company could resort to involuntary layoffs but does not want to, he said.

GM has 40,000 salaried employees in the U.S. and Canada.

Henderson said the company intends to reduce its truck production capacity by 300,000 units, 150,000 more than it announced at its annual meeting in June.

The company will speed up closures of its truck and sport utility vehicle factories in Janesville, Wis.; Oshawa, Ontario; Silao, Mexico; and Moraine, Ohio, and it will make thousands of job cuts at other truck assembly and parts factories, Henderson said.

He would not say if further plants will be closed, and said the company still must negotiate further cuts with the United Auto Workers.

GM said it will suspend its $1 annual dividend immediately, which will improve liquidity by $800 million through 2009. It's the first time the company has suspended its dividend since 1922.

The company also plans to raise $2 billion to $4 billion through the sale of assets, including its Hummer brand. It also plans to borrow $2 billion to $3 billion by pledging assets including stock of foreign subsidiaries, brands, stake in its finance arm and real estate.

GM and other auto companies have been hammered by high gas prices, the weak economy and a rapid shift in consumer tastes away from trucks and SUVs. GM's sales were down 16 percent in the first six months of this year, led by a 21 percent decline in truck sales.

GM is forecasting total U.S. sales of 14.7 million this year. That's down from 17 million as recently as 2005.

Just six weeks ago, GM said it would close the four truck and SUV plants and boost production of the smaller, more fuel-efficient cars that customers are demanding. It also announced production of a new car that could get 45 miles to the gallon and would go on sale in 2010.

But for an impatient Wall Street, those changes weren't enough, and the company's shares have hit a series of 50-year lows since July 2.

Analysts had speculated GM would need to raise more cash to get it to 2010, when it will start seeing the savings from its landmark 2007 contract with the United Auto Workers that cut hourly workers' wages and transferred billions in hourly retiree health care obligations to a union-led trust.

As part of its financing plan, GM will defer $1.7 billion in payments to that trust that had been scheduled for this year and next.

Some analysts have also speculated that GM would declare bankruptcy, but Wagoner said last week that bankruptcy isn't a consideration.

On the Net:

General Motors Corp.: http://www.gm.com

[Samco Fab]

I hope they dont sell it to Toyota:p:D

[Chris Tobin]

I hope they dont sell it to Toyota:p:D

Ohhhhhh Crap, that would suck!!!!!!!!:eek:

PDailey would love it though!!!

Really I don't think Toyota would buy it, as their sales are off even more than GM and while they have TONS of cash they don't need to be making bad investments. Yes I think Hummer would be a bad investment for them... The Hummer brand is a bold American but-kickin' off road dominating line of vehicles, even the H3 is VERY capable off road in stock form! I don't think buyers would like to see Hummer owned by Toyota...

I think it would be better if it were sold to an enthusiast group that will keep it strong and market to the strengths of the brand and develop new and smaller off road vehicles that can take the abuse like the original H1s but with better economy and civility... It needs to be enthusiast owned or it will die and go away.

just my 2 cents...

[Samco Fab]

H3's do have good fuel economy, an inline 5 cylinder is a fuel sipper not a gulper:confused:

Too bad they are not marketed as a economical vehicle to go off road in.

[jeff]

What investment group (or XYZ Corp board of directors) in their right mind would purchase the Hummer brand right now? I think GM is going to have a hard time unloading Hummer in the current economy. A "bold American butt kickin" brand is going to be a tough sell to foreign investors.

Aloha

[randy s]

as an owner of both a h-1 and h-3, i really don't care who buys the brand as long as they make parts available. on another note, i was watching a concept auto show on the tube, and gm had the hx concept hummer on there and it really looks bada--. with what we know so far, i'm trying to think of a reason they would put together a concept car that they know godda-- well they [or anyone else ] would never mass produce. kind of a head scratcher in my opinion.

[Ryno]

why would you worry about parts....The h3 is a trailblazer, and the H1 is the beast. As long as our military has H1's no worries. I will say my wife's trailblazer does really well on gas for being what it is.

The branding is going to be a hard sell, but those boys in Dubai seem to be buying up every big HP playtoy around. Maybe a foreign buyer will come snatch it up.

[randy s]

why would you worry about parts....The h3 is a trailblazer, and the H1 is the beast. As long as our military has H1's no worries. I will say my wife's trailblazer does really well on gas for being what it is.

The branding is going to be a hard sell, but those boys in Dubai seem to be buying up every big HP playtoy around. Maybe a foreign buyer will come snatch it up.

i could'nt get parts easily when h-1's were in production.

[randy s]

why would you worry about parts....The h3 is a trailblazer, and the H1 is the beast. As long as our military has H1's no worries. I will say my wife's trailblazer does really well on gas for being what it is.

The branding is going to be a hard sell, but those boys in Dubai seem to be buying up every big HP playtoy around. Maybe a foreign buyer will come snatch it up.

trail blazer?

[Chris Tobin]

trail blazer?

I think Ryno was saying that the H3 shares many simularities with the Trailblazer and the Colorado trucks, so parts should not be impossible except for some that are specialized to that chassis configuration.

[NIKAL]

Here's what I found on the H3,

The Hummer H3 SUV is a vehicle from General Motors' Hummer division, introduced in 2006. The H3 is the smallest of the three Hummer models, and though the H3 concept was a pickup truck, and currently introduced as a conventional SUV, with a future model close to the concept H3T being planned to be launched in the third quarter of 2008. Its platform is based on the GMT355 which underpins the Chevrolet Colorado and GMC Canyon pickup trucks.

[Oilworker]

What about this green crude fuel?

http://www.leftlanenews.com/green-crude-fuel-of-the-future.html

Is this just another hoax or are they (http://www.sapphireenergy.com/story) for real?

Has anyone of you used this "fuel" already?

Thanx,

Robert