Decline in the sales of pickups is getting worse
By Andrew C., 30 Aug, 2010. 0 Comments
For years, General Motors had earned significant profit from trucks but now it appears all that is about to change. GM closed a Pontiac truck plant closed this week, indicating that indeed the decline in the sales of pickups is getting worse.
This year, sales of pickups have dropped sharply, even more than the drop in overall vehicle sales, which are at their lowest in 25 years. From selling 2.5 million pickups in the US in 2004, it has come down to about 1 million trucks this year. In 2004, many of these trucks were used as everyday transportation, not only as work trucks or to haul trailers. For years, automakers have earned considerable profit from trucks. Due to the closure of the 3.4-million-square-foot Pontiac truck plant that has been operating for 37 years at a site 20 miles north of Detroit, GM will have some of the production handled by a third shift at an assembly plant in Indiana. Unfortunately, there‚ nothing that can be done for the 1,100 workers who will lose their jobs in Pontiac. There was a time when GM could not build gas-guzzling pickups fast enough to meet consumer demand but that era is no more.
[via autonews]
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