GM to close plants, possibly drop Hummer

General Motors CEO Rick Waggoner announced before today's annual meeting in Delaware that GM is closing its plants in Oshawa, Ontario; Moraine, Ohio; Janesville, Wis.; and Toluca, Mexico. He also said the Hummer brand may be discontinued.

The GM board has approved production of a new small Chevrolet car at its Lordstown, Ohio, plant in mid-2010 and the Chevy Volt electric vehicle in Detroit.

The closings and production announcements are a response to slumping sales of pickups and SUVs precipitated by high oil prices. Wagoner said the market shift to smaller vehicles is permanent.

About 2,500 workers at each of the four factories will be affected by the closings. According to reports, many of these workers should be able to take openings created when 19,000 U.S. hourly workers leave later this year through early retirement and buyout offer.

Wagoner said the moves will save the company about $1 billion per year beginning in 2010. Combined with previous actions, the company will have cut costs by $15 billion per year.