AM General says because of Hummer-sized dropoff in sales, it will cut 160 jobs at its Indiana plant by year end. Company officials say expensive gas and relatively large sticker prices are two obstacles even the lane-hogging Hummer H2 just can't overcome. H2 sales have also been cannibalized by the somewhat smaller and more fuel-efficient H3.

On an ironically positive note, U.S. government orders for military Humvees are outpacing the Indiana plant's production capability. AMG spokesman Craig Mac Nab says some of the newly unemployed workers might be moved to H1 production.

This isn't the first time H2 plant workers have been laid off. AMG let go 170 workers in January. The H2 plant also shut down for two weeks in October in an attempt to control overproduction. Is this the end of the lumbering, dinosaur-like H2? Or can it evolve into a more planet-friendly vehicle?

[Sources: CNN and The Detroit News]

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