Oil Shocker For GM: Trucks out, cars in

Source CNN Money:

General Motors announced plans Tuesday to shut four truck and SUV plants that employ thousands of workers, saying high gas prices are here to stay - and, with them, consumers' growing preference for more fuel efficient vehicles.

At a news conference in Wilmington, Del., GM Chairman and CEO Rick Wagoner announced plans to roll out more fuel-efficient vehicles, including approval to start the production process on a vehicle that can run gas-free for trips up to 40 miles.

The plants to be closed include two U.S. facilities - the Moraine, Ohio plant that builds midsize SUVs, such as the Chevrolet Trailblazer and GMC Envoy and the Janesville, Wis., assembly line that builds large SUVs such as the Chevy Tahoe and Suburban and GMC Yukon.

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"These higher gasoline prices are changing consumer behavior and rapidly," said Wagoner. "We don't think this is a temporary spike or shift. We think it is permanent."

Wagoner also said GM is looking at possibly selling its Hummer unit as part of a strategic review of the SUV brand based on military vehicles. The Hummer H3 mid-size SUV gets about 13 to 14 miles per gallon in city driving in the most recent EPA ratings. The H1 and H2 are larger vehicles on which EPA does not give mileage estimates.

The brand has become the symbol to many members of the public of a gas-guzzling large U.S. vehicle.

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