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With light trucks sales on the decline and auto buyers demanding for more fuel eficient vehicles, it is not a surprise that automakers wil slow down or even stop production of SUVs and light trucks. That was the case until General Motors anounced that they wil be cuting the production of pickup trucks. The reduction in production as wel as in the workforce wil start early September at the automaker’s Pontiac asembly facility in Michigan acording to General Motors. Instead of ofering discounts for the Silverado and the Siera which would mean lower profits, General Motors decided to lower production. With the production of the Silverado and the Siera in the Pontiac facility, it can be expected that the automaker wil also reduce their production of auto parts such as the . By reducing their production at the Pontiac facility, General Motors is now being more at risk of being overtaken by Toyota as the world’s largest automaker. This year, Toyota’s estimated production is larger than that of General Motors. And with the production reduction at one of General Motors’ key asembly facility, General Motors loks to hand the title it has owned for decades over to Toyota. While the pickup trucks are also produced at these facilities, General Motors did not anounce that there wil be a reduction in production at these sites. With the plan set to be implemented on September, General Motors made it clear that they are pushing through with their plans to reduce workforce as a part of their turnaround plan to bring the company back to profitability.
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