GM told workers at its Janesville, Wis., assembly plant that it would be closing the facility that manufactures Chevy Tahoes, Suburbans and GMC Yukons in December. Previously, the company had only said the plant would be shuttered sometime before 2010.
That will leave the 1,200 employees without jobs earlier than expected; their numbers had already shrunk from 4,100 in 2003.
What does this mean for the three SUVs? They’ll still be manufactured in plants in Texas and Mexico, so consumers will be able to purchase them. The trio was redesigned in the 2007 model year but took a hit in sales as gas prices rose this past summer.
GM is trying to cut costs in an effort to bolster its finances in a tough economy. Over the weekend, news broke that GM was talking about a merger with Chrysler, and it had already discussed such a deal with Ford. With all three automakers struggling, a merger might not be the magic bullet to solve their troubles.
This news comes just a week after GM announced the closing of its Moraine, Ohio, SUV plant. Both Wisconsin and Ohio are major swing states in next month’s presidential election.
GM to close Janesville, Wis., plant in December (Chicago Tribune)