AM General layoffs could spell end for Hummer H2

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General Motors yesterday announced it would be laying off 2,000 workers and reducing production at 10 North American plants over the coming months. At the same time, AM General, producer of the Hummer H2, laid off 200 workers from its Mishawaka, Indiana plant. Now GM's extended production halts could combine with the layoffs to put H2 production on ice for the foreseeable future.

Production wasn't expected to restart until March at the earliest, but with GM's announcement of a general slowdown or halt in output, plant officials and workers are fearing H2 production could be delayed even longer - and possibly permanently.

In the mean time, AM General is trying to find places within the company for the laid off H2 workers, though company spokesman Craig MacNab also says, "Nobody knows what's going to happen with the H2 plant," according to Mishawaka local news outlet WSBT. When asked directly if GM had plans to kill the H2, MacNab said only, "There are no plans regarding that. We haven't announced anything."

The unstated 'yet' at the end of that sentence speaks louder in its absence, but on the other hand, the influx of cash from Treasury loans and continued low fuel prices could keep GM and AM General in the Hummer business for a few more months.

With the brand already under strategic review and being shopped to interested parties, however, it's only a matter of time.
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