GM cuts SUV and Pickup production , Hummer unaffected

General Motors recently announced production cuts at 6 plants that produce trucks and SUVs, citing increased fuel prices and stiff competition. Affected plants are in Texas, Wisconsin, Indiana, Michigan, Mexico, and Ontario. However, the Hummer H2 plant in Mishawaka, IN and the Hummer H3 facility in Shreveport, LA will continue production as scheduled. This summer, Toyota’s full-size Tundra had $5000 in incentives, making it hard for GM to compete with their new price structure which narrows the gap between dealer cost and MSRP. GM increased incentives, but it may have been too late – they could announce more production changes after August’s sales numbers are released on the 4th of September.