According to the Associated Press, an anonymous source leaked info that the top managers from General Motors are set to further the company's restructuring plan to answer the increasing demand of car buyers for more fuel efficient cars.
It is believed that more cost cutting measures will be taken including the all too familiar story of cutting production of trucks and SUVs. Workers will then be moved from truck factories to car plants to increase the company's output for smaller and more economical vehicles.
Times have changed and car companies are forced to adapt. The leaked report shows similarities with Ford Motor Co.'s own recent announcement of restructuring. As fuel prices push to exceed $4 per gallon, the need to produce more economical cars is a must for auto makers to remain competitive with a budget coscious market.
Like what GM Rick Fisher said as quoted by the Journal, "Obviously these times dictate more actions, and Rick (Wagoner) and the team are about doing that. Rick and the team are looking at what things can be done and will be done."
GM CEO Rick Wagoner did not comment about the reports of the anonymous source of the Associated Press. But with gas prices expected to rise further still and with rival Ford Motor Co. already taking aggressive measures to focus production with a smaller vehicle line up, it is very likely for the report to hold true.
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