GM to Temporarily Close 20 Plants

On Friday, General Motors Corp. stated that it will temporarily close 20 of its factories across North America and reduce vehicle production while it tries adjust to the decline in automobile demands. The company will cut 250,000 vehicles from its production schedule for the first quarter of 2009. They normally produce 750,000 automobiles for that quarter. Many of the plants will be closed for the whole month of January and employees will be temporarily laid off and will receive part of their normal wages. They could be able to apply for state unemployment benefits. GM reported that its sales are down 41 percent for November and are down 22 percent for the first 11 months of 2008.

General Motors currently trying to obtain Government loans to be able to stay in business. The White House says that it might go into its $700 billion Wall Street Bailout fund to help GM and Chrysler. The entire automobile industry is having to make cuts due to the decline in the demand of automobiles.

GM Introduces New Hybrid Pickups

General Motors will introduce a new hybrid full-size pickup and a concept hybrid truck this week at the Chicago Auto Show. The company says that the 2009 GMC Sierra hybrid gives 25 percent more in fuel economy and you don’t have to lose anything in performance. The Sierra is also the next large GM vehicle to get the new two-mode hybrid system. The GMC Denali XT concept gives 50 percent more in fuel economy than most other small pickups. The SUV hybrids are suppose to be on the market early this year and the Sierra is suppose to be on the market at the end of 2008.

Two-mode hybrid cars run without the gas engine at low speeds and at higher speeds the electric motor gives more power. A two-mode system is good for towing.

Hybrid vehicles initially cost more but drivers can driver longer distances before the car needs to be refueled so you can save money in the long run. Small businesses can take advantage of the government tax breaks for hybrids.