Gm Closing Suv Plant Ahead of Schedule

General Motors has decided to pull the plug on its Moraine Assembly plant earlier than expected, closing the factory that builds the Chevrolet TrailBlazer and related models just two days before Christmas. Although the move had been rumored for weeks, it wasn't something that GM originally said would happen until 2010. But, with the economy in a tailspin and consumers making the shift to smaller SUVs and cars, the plants closing this year has been assured.

Just this past September, GM discontinued the second shift for the plant, a move that laid off 1000 workers. With the plants shutdown in December, another 1400 GM workers will be looking for jobs or taking early retirement.

Once Promising Sport Utility Models

When the SUVs debuted earlier this decade, GM had expected the vehicles to play an important part in helping the automaker shore up its position as one of the largest passenger truck builders in the world. The Chevrolet TrailBlazer was joined by the GMC Envoy, Oldsmobile Bravada and later the Buick Ranier as the four vehicles sharing the same platform, though the Olds and Buick versions have since been retired. Later, the Isuzu Ascender and Saab 9-7X were developed from this same platform, giving GM and its affiliated companies as many as six models sharing most of the same components.

Three Row Models Dropped

When the TrailBlazer and its siblings were introduced for the 2002 model year, GM also produced an extended version of each model which allowed permitted a third seat to be added, a move that extended passenger capacity from five passengers to seven. In 2006, the extended models were dropped as GM chose to concentrate on its newest line of crossover vehicles which includes the GMC Acadia. Like the SUVs, the newest crossovers are sold across four product lines and, unlike the SUVs, are based on a car platform instead of a truck platform, a move which makes these vehicles easier to handle, offer a smoother ride, and provide better fuel economy.

What The Future Holds

Retreating gas prices may stoke demand for GM's new crossovers but the sour economy could put pressure on GM to hold prices down despite an increase in financing and raw material prices. GM had been looking at developing a new line of midsize SUVs, but the plans are apparently on hold as the company retools its line up to sell smaller cars and trucks to keep pace with shifting consumer demand.

In all, the closing of the Moraine plant is a disappointment to many, perhaps most so as it coincides with the Christmas holiday.