Shakeup at GM

US auto giant General Motors is making some dramatic moves in response to a growing demand for fuel-efficient vehicles.

Rick Wagoner, GM chairman and CEO, made the announcements this week as part of the GM annual meeting of stockholders.

The biggest news from the company is that it is to halt production at four plants that build pickups, SUVs and medium-duty trucks and "strategically review" the Hummer brand.

Wagoner attributed the move to the change in consumer behaviour in response to higher petrol prices in the US, which in some states have now crossed the $4/gallon mark.

He said that the Oshawa truck assembly facility in Canada, which builds the Chevy Silverado and GMC Sierra, will likely cease production in 2009, while its Moraine, Ohio plant, which builds the Chevy TrailBlazer, GMC Envoy and Saab 9-7x, will end production at the end of the 2010 model run, or sooner.

There's no better news for workers at the Janesville, Wisconsin plant, which will cease production of medium-duty trucks by the end of 2009, and of the Tahoe, Suburban and Yukon ranges in 2010, or sooner, if market demand dictates.