GM to cut truck production by 300K units by 2009, cuts V8 development
We have been covering the amazing decline of the pickup truck in America over the past few months, but General Motor's recent announcement that it will be cutting truck production by some three-hundred-thousand units by next year puts quite a cap on it. The General makes a hefty profit on each full-size truck it sells, and this production cut will have a huge impact on the bottom line of America's largest automaker. Of course, GM is probably quite pleased that it's not releasing a brand new model of its full-sizer this year like some other less fortunate competitors.
In addition to the production cuts, GM CEO Rick Wagoner has also announced that the company will delay the pending redesign of its largest trucks and SUVs. The automaker intends to save a whopping $7 billion by putting off its next truck and will also cut the development of V8 engines. A few years back, nothing seemed more American than V8 engines and great pickup trucks. While nobody expects these two icons to go the way of the Dodo, it's clear that development money is now much better spent elsewhere.
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