General Motors CEO Rick Wagoner announced that four assembly plants will soon cease operating, including Oshawa's, in Ontario. These facilities are all manufacturing pickup trucks and SUVs, two vehicles types that are steadily declining.

GM has no immediate plans to allocate products to the Oshawa plant, which will therefore close in 2009. The move follows the elimination of a work shift a year ago and will send home over 1,000 employees.

Rick Wagoner, General Motors CEO

Other plants axed by GM are in Janesville (Wisconsin), Moraine (Ohio) and Toluca (Mexico).

With the rising gas prices, demand for fuel-thirsty vehicles is rapidly melting. Consumers now want highly fuel-efficient cars, which explains why the automaker is moving away from trucks and SUVs. According to Wagoner, GM had to act quickly and aggressively.

This announcement is part of GM's major turnaround plan, in which small economy vehicles will play a huge role.

The future of Hummer is thereby questioned. Wagoner is currently analyzing every possible scenario. During the press conference, he did not oppose to the idea of selling the legendary brand.


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