4

Sep

Gas prices and naughty loans cost GM truck plant jobs

Posted by admin  Published in GMC, Etc., MPG, Chevrolet, GM

As gasoline prices across the United States continue to hover at $3 a gallon and up by the Labor Day weekend and the toll of not good mortgages continues to climb, the effects will be felt in Oshawa, Ontario.

High gas prices tend to hit casual, non-commercial pickup truck buyers who buy one considering they might need to haul some top-soil or mulch a few times a year. The increasingly troubling aspect for General Motors (and Ford and Chrysler) is the mortgage problem. A large chunk of the full-size pickup market is consumed by commercial buyers, many of whom are in the interpretation industry. With the implosion of the sub-prime mortgage

market, new interpretation starts are slowing to a crawl and builders are ordering fewer trucks. As a aftereffect GM has announced that they will cut the third shift at the Oshawa truck plant and lay off 1,100 employees there. Oshawa was the final of five truck plants still running three shifts and had already cut overtime. Next spring, the Oshawa plant will start building pickups equipped with the Two-Mode hybrid system that’s coming that fall on the Tahoe/Yukon SUVs.

[Source: Automotive News - Sub. req’d]

Original post by Sam Abuelsamid

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