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

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

By Beth Boehne

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.

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.

Thursday, Apr 17 at 1:23 PM Anonymous wrote ...

Gas prices almost $3.50 a gallon & people don't want these guzzlers. Shocking. Utterly shocking. Don't worry though. I'm sure as stupid as we are as a country, we'll be buying them real soon again. We only learned our lesson briefly from the oil crisis of the 70's. We drove compacts for a while, then we had to have the giant SUVs, because bigger is better after all, even if it costs you an arm & a leg & drags the whole country down with you.

Tuesday, Apr 15 at 9:04 AM E85 a joke wrote ...

Google ethanlo or E-85. It costs $1.50 to make $1.00 worth of that junk. It eats engine hoses. It is not a viable alternative to gas.

Tuesday, Apr 15 at 3:40 AM Ralph wrote ...

Why didn't they just modify them to run off of Hillary's hot air while she was there :) Honestly though, seems like the last month would of been a good time to re-tool and switch over while production was at a stand still.

Tuesday, Apr 15 at 3:36 AM Mitch wrote ...

Does it really surprise you that these huge vehicles are not selling? Who could afford the gas to begin with. Very impractical vehicle unless you live in the mountains or somewhere like Minnesota.

Monday, Apr 14 at 11:21 PM HG wrote ...

Todd: Going green isn't always the cheapest option - just look at the price of organic food at the market. Several companies are working on cellulosic ethanol, which can be made from non-organic material, and cheap - about $1/gallon. We're still a few years away from that being a viable option, but now is the time to increase the fleet of vehicles that run on ethanol.

Monday, Apr 14 at 8:53 PM Todd wrote ...

Thats a bunch of crock e-85 uses more than regular gas i don't know why they are even trying. for .40 cents cheaper good luck!!

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