We sat down in Dallas recently with Rick Wagoner of GM, which employs about 3,000 people in North Texas. We were most curious about the GM Assembly plant in Arlington, where some 2,400 workers build the company’s full-size SUVs.
1) How important is Arlington to GM’s long-term success?
Probably more important than ever, since it’s our only large-SUV plant. That’s a product category that’s obviously been under a lot of pressure, but it’s still one in which GM has had a very strong market position.
2) Given current gas prices, do you see a need for big SUVs?
I do. Because, think back to the period before the mid-’90s-before big SUVs really took off-there was a demand for product like that. There were people who towed a lot, who go off-road in either recreation or work pursuits, who need to carry big volumes of people or cargo. What happened from the mid-’90s on was that it also became a fashionable vehicle. We think that, if we continue with higher oil prices, the demand in that category will be less, but there’s still a need for the product’s basic capability.
3) The Arlington plant is also building GM’s new “two-mode hybrid” SUVs. What percentage of total production does the hybrid account for now, and how might that change over time?
We’re starting out quite low as a percent. Frankly, we’re going to get it out on the market and test it. So we’ll get a look as we ramp up our own technology and dealer stocks, and hopefully as the economy begins to improve. But I think it could play a significant role over time.
4) Can you ensure the Arlington workers that their plant will stay open?
I’d love to. Certainly our current plan is that it will stay open and be an important part of the system.
5) Does GM see any potential in T. Boone Pickens’ energy plan calling for making natural gas a key vehicle fuel?
We’re going about sort of re-educating ourselves in both the availability of natural gas, and understanding whether automotive is the highest-priority use for it. I would say we’re wide open and very interested in input from Mr. Pickens and others as to future prospects. But it’s not inexpensive, so we need to make sure there’s a real market there.
