General Motors has just announced that they will be cutting full size truck production in North America by 138,000 units by the end of the year. This includes taking out 88,000 full size pick-up units and 50,000 full size SUV units. They will be eliminating three full size truck assembly plants in Pontiac, Michigan; flint, Michigan; and Oshawa, Ontario. They will also be eliminating one full size SUV assembly plant in Janesville, Wisconsin.
Shift reductions will be effective on the following dates:
• Flint Assembly (Heavy Duty Chevrolet Silverado and GMC Sierra) — July 14
•Janesville (Chevrolet Tahoe and Suburban, GMC Yukon, Yukon XL) — July 14
• Pontiac Assembly (Chevrolet Silverado, GMC Sierra) — July 14
• Oshawa Truck (Chevrolet Silverado and GMC Sierra) — Sept. 8
The decision was made to bring production more in line with market demand. Since the market has been shifting more towards cars and crossovers, GM is seeing strong sales of the new Chevrolet Malibu, Cadillac CTS, Chevrolet Cobalt, Pontiac G6, Chevrolet Impala, Buick Enclave, and GMC Arcadia.
“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 of GM North America.
Clarke also added that the company is continuing to explore options to increase car and crossover production.