The Ugly Road AheadDavid Welch
A week after Ford said it would slow down truck production, General Motors followed with a similar move. This time, GM is slowing down production at seven truck and suv plants. That pretty much says that the gas-guzzlin’ suv business is wheezing its last breath. With it goes Detroit’s profit center. The only thing that mitigates the damage from the loss in suv sales is that GM said that the company is adding shifts at some passenger car plants to meet growing demand as consumers trade down to smaller vehicles. GM also said it would slap 0% financing on most 2008 models to spark sales. That’s sure to hit profits.
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