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With news that GM has shelved its large car rear-wheel-drive projects (apart from the Commodore/Ute), it was only a matter of time before the company begun downsizing the rest of the line up, starting with trucks and SUVs.

 A press release just issued by GM says the company is focusing on smaller cars, beginning with an all-new Chevrolet compact car. GM has also given the green light for production funding for the petrol-electric car, the Chevrolet Volt.

Additionally the old General is expected to drop models in its full-sized pickup and SUV lineup. So far the Chevrolet Silverado and GMC Sierra, which are built in Canada are likely to end production in 2009. The Chevrolet Kodiak will finish production this year.

The Chevrolet TrailBlazer, GMC Envoy and Saab 9-7x, will also be axed by 2010 or sooner if necessary.

The biggest news however is the future of GM’s Hummer brand. The company says it’s currently undertaking a strategic review of Hummer to find out where/if it fits within the GM portfolio.

“We are making a number of important announcements today, covering everything from product and technology investments to capacity adjustments to a strategic review of our Hummer brand, these moves are all in response to the rapid rise in oil prices and the resulting changes in the U.S., changes that we believe are more structural than cyclical.” Rick Wagoner, GM chairman and CEO said

GM says it’s keeping all options open, from a complete revamp of the product lineup to a partial or complete sale of the brand.

Has GM finally seen the light to move away from large cars into smaller more fuel efficient cars? What should GM do with Hummer? Who could be a potential candidate to take over the iconic brand?




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