The giant American car-maker General Motors cutting back on making giant American cars. With the spiralling cost of fuel hitting traditional US gas-guzzlers, GM is closing four factories which make trucks and big so-called SUVs. And Chief Executive Rick Wagoner said the future of the Hummer is in question.
He said: “High energy prices along with the rapid change in auto industry sales mix require further actions to position us for sustainable profitability and growth. On the product side, we have been moving rapidly and quite successfully to revitalize our US car business and we are considering all options for the Hummer brand from a complete revamp of the Hummer lineup to partial or complete sale of the brand.”
Analysts say GM might have left it too late, and finding a buyer for the brand, which is based on the rough terrain vehicles used by the military, could prove difficult. These latest moves, which have been approved by GM’s board, show the company believes that the price of fuel is a permanent threat to its business. The board also rubber-stamped funding for the Chevy Volt, an electric vehicle they hope to have on sale by 2010.