GM sets its sights on smaller wheels

0 Comments | USA TODAY, June, 2008 | by Sharon Silke Carty

General Motors' announcement Tuesday that it will close four truck and SUV plants and look at strategic options for the Hummer brand is another sign that the auto industry faces a bleak reality: The days of big wheels are over.

GM CEO Rick Wagoner said Tuesday that high gas prices -- which passed $3.50 a gallon nationally in May and now top $4 a gallon in many states -- are here to stay. That means, he said, that GM must be less reliant on pickups and SUVs, which have been hugely profitable for domestic automakers.

"Higher gasoline prices are changing consumer behavior, and they are significantly affecting the U.S. auto industry sales mix," Wagoner said before the company's annual meeting in Wilmington, Del.

GM also announced a new fuel-efficient...