General Motors is set to cut 47,000 jobs and plans to seek up to $30 billion aid and this move by GM is just another testament to how bad the future of General Motors look. It is also part of the plan of General Motors to idle five more US factories. All these moves are part of General Motors’ massive restructuring plan. The carmaker is the recipient of the $13.4 billion in federal loans and it plans to seek another $16.6 billion the moment the economic fails to get back on track. In a news report, it added that General Motors can achieve its profitability in two years time and can fully repay its loans by 2017. The company’s plan was submitted to the Obama administration for review. General Motors is also working to win concessions form United Auto Workers and the bond holders of the company in order to effectively re-size the company. The UAW also had talks with Chrysler LLC and Ford Motor Co. and said that it had reached a tentative deal on contract changes. Still based on reports, there are still discussions on how the companies will fund the union-run trust funds that will take the companies’ healthcare obligations for the retireees for next year. General Motors’ brand will be down to four last December- Chevy, Buick, Cadillac and GMC. And GMC is considering the sales of Hummer.
Hummer got to my attention when some of my news search results revealed that GM is about to re-evaluate Hummer amid the growing shift in consumer preferences and escalating prices of petrol. So here’s a brief background info about the Hummer.
Hummer is a brand under General Motors. There are three versions of Hummer in the market, the H1, the H2 and the H3. The H1 Hummer is the version that is based on the military High Mobility Multi-purpose Wheeled Vehilce or the Humvee. The H2 and the H3 on the other hand were introduced to cater to the civilian market. Hummers are considered as SUVs though other markets see Hummers as trucks. This is the only vehicle brand in the US whose entire model range comes standard with a low-range transfer case, high-ground clearance and off-road tires, making these vehicles truly perfect for off-road use.
Though Hummer is an iconic figure in the market and has its own fans, a number of criticisms have been thrown at this vehicle. Poor fuel economy. This vehicle have poor fuel economy. safety is an issue as well. Because of the vehicle’s weight, it takes longer and farther to stop in a number of braking situations. Compared to other SUVS, the Hummer lacks standard safety features like the child safety locks, child seat tethers, side air bags and stability control. Size is another issue that affects Hummer. Drivers and the enthusiasts may find it hard to park the vehicle.
In a growing admission that the growing cost of petrol may not be temporary, General Motors is about to rethink its position with regards to the production and the status of Hummer. This latest development came after General Motors Corp has announced Tuesday that it is closing its four truck plants that employs 10,000 workers. The move of the company doesn’t end with the closure of these plants, the company added that it could sell its Hummer brand, one of the more recognizable vehicle under the GM stable. The main reason why the plants are closed and the Hummer brand is to be re-evaluated is because of the escalating prices of petrol. The country’s largest automaker sees this factor as a permanent threat to business. The announcement was made by GM’s Chief Executive Rick Wagoner in a news conference before the annual meeting. He said that the company will close the four North American truck plants and will add shifts at two US plants that makes the more popular and more fuel efficient cars. The Chief Executive added that the company is reviewing the status of Hummer and added that the company could sell the SUV. Wagoner added;
High gasoline prices are changing consumer behavior rapidly. We at GM don’t think this is a spike or temporary shift. We believe that it is by and large permanent.
The move of the company to reconsider the Hummer comes as the price of petrol continues to hover around $4.00 in the country. And this development has led consumers to rethink their options as well and has led them to patronize smaller, and fuel efficient cars. This can be seen on the latest reports that reflects smaller cars from Honda and Toyota has eclipsed Ford’ F Series as the best selling vehicle in the country. In response to the obvious shift in preferences by the consumers, Chief Executive Wagoner outlined the company’s plan to cut car production by 500,000 to 3.7 million vehicles a year.
The Hummer is a military-derived SUV that has become synonymous with gas-guzzling excesses thru the years.