Slow H2 sales have some employees concerned

by Dustin Grove (grove@wsbt.com)

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About 400 workers at the H2 plant in Mishawaka were laid off because of the American Axle strike. (WSBT photo)

By Beth Boehne

Story Created: Apr 14, 2008 at 3:56 PM EST

Story Updated: Apr 15, 2008 at 10:34 PM EST

MISHAWAKA — Nationwide, Hummer H2 sales were down 46 percent in February compared to the same time last year. Sales were down 23 percent in March, all while sales increased for smaller cars that cost less and get more miles per gallon.

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Economist Grant Black says it’s easy to figure out why.

“People are rethinking the types of vehicles they want,” he said.

It’s that slump in sales that has some H2 employees concerned. Nearly 400 people have already been off the job for more than six weeks at the Mishawaka plant because of a parts shortage. Now, because of the slowdown in sales and a downturn in the economy, some are worried they might not be hired back.

In November 2006, 160 employees were laid off after GM ordered a slowdown in production.

But Monday, General Motors spokesperson Nick Richards said “the H2 is still a viable part of the Hummer portfolio. Once we get axle parts, our plan is to continue production.”

Just last week another employee, waiting to return to work, said he remained optimistic.

“We’ll be back to work. I mean it might not be this week or next. But we’ll be back,” said Jim Haywood.

Meanwhile, GM is making some changes for the H2 to go green. By 2010, they will all be capable of burning E-85 fuel.

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