General Motors plans to boost production of smaller cars
Tue 25 October 2005
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General Motors is preparing to increase production of smaller, fuel efficient cars in case the rise in US demand for such vehicles, driven by high oil prices, continues into the future.
Reported in the Financial Times, Rick Wagoner, Chairman and Chief Executive of GM, said that it remained unclear whether the change in US drivers' preferences was a permanent or temporary phenomenon.
He said: "If we look at the sales trends for the past 45 days and extrapolate those for next year, it results in a significantly different production plan from what one would have thought 45 days ago."
GM plans to produce a new family of small cars in the next six years and more than double its line of "crossover" vehicles by 2009 according to an earlier report in the Detroit News.
Related Links
Financial Times story link
Detroit News - Autos Insider story
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