GM to close four plants

General Motors Corp said it was closing four truck plants and could sell its Hummer brand to cut slow-selling trucks and SUVs from its line up in response to higher gasoline prices the automaker now sees as a permanent threat to its business.

Chief executive officer Rick Wagoner, speaking after a revised restructuring plan was approved by the automaker’s board, said GM would close the four North American truck plants and add shifts at two US plants making more popular car models.

In addition, Mr Wagoner said GM was reviewing the Hummer brand and could sell the military-derived SUV line, which has become synonymous with gas-guzzling excess.

“US economic and market conditions have become significantly more difficult,” Wagoner said, adding higher gasoline prices have caused consumers to swap out of higher-margin trucks and SUVs faster than GM had expected.

In a related shift, Mr Wagoner said GM’s board approved funding for a next-generation compact to replace the Cobalt and a new subcompact to replace the Aveo. Both Chevrolet-branded small cars, which have been under development at GM’s Korean unit, are set to go on sale in 2010.

GM’s board also allocated production funding to the Chevy Volt, a heavily touted, all-electric vehicle that GM expects to have in showrooms by 2010 and to assemble in Detroit.