JANESVILLE, Wis. -- General Motors announced Tuesday that the automaker will close its Janesville assembly plant and three others by the end of 2010.

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Company officials said that it will close four truck and sport utility vehicle plants in the United States, Canada and Mexico as surging fuel prices hasten a dramatic shift to smaller vehicles.

Chairman and CEO Rick Wagoner's announcement detailed the company's restructuring plans and came shortly before GM's annual shareholder's meeting in Wilmington, Del. Wagoner cited higher gas prices for a decline in demand for pickup trucks and SUVs for the planned closures. The Janesville plant produces large-sized SUVs.

He said that the Janesville factory will end production of medium-duty trucks by the end of 2009 and SUV production by the end of 2010, or possibly sooner.

"Now, these are for sure difficult decisions," Wagoner said. "We will work closely with our union partners in the U.S., Canada and Mexico to mitigate the impact of these actions … made necessary by what we believe are long term and permanent changes in consumer demand for trucks and SUVs."

Before the announcement, auto industry analysts said that the Janesville factory was among those most vulnerable. The Janesville plant employs about 2,600 workers.

Besides the Janesville plant, he said the company will cease production at a full-size pickup factory in Oshawa, Ontario, Canada, stop the construction of SUVs at factories in Moraine, Ohio, and desist manufacturing mid-size pickups in Toluca, Mexico.

Greg Gardner, an analyst with the Oliver Wyman Group, said that both plants are a distance from parts suppliers. He said that plants in Texas and Mexico can easily satisfy demand for big SUVs, while GM may stop building mid-size SUVs in a few years.

The closing is GM's reaction to long-term trends in energy costs and what it considers a permanent shift in consumer behavior. Wagoner said that 18 of its next 19 product launches will be cars and crossovers, which is more proof of the company's belief in the trend that consumers are shifting away from buying trucks and SUVs.

GM officials said that while it will close plants and slash shifts, it will increase production of energy efficient vehicles, including hybrids and its new Volt electric vehicle.

Wagoner said the company will build a new small car in Lordstown, Ohio, in mid-2010 and will add shifts at car plants in Lordstown and Orion Township, Mich.

As an additional signal in the changing times, Wagoner also said the Hummer brand might be discontinued. He announced the moves in response to slumping sales of pickups and SUVs brought on by high oil prices. He said a market shift to smaller vehicles is permanent.

Janesville is GM's oldest plant, having opened in 1919. The plant had survived the Great Depression, a world war, and GM's major layoffs in the 1980s.

Janesville employees were notified on Tuesday morning of the decision to close the plant.

The Janesville plant's closure is an economic blow to the Wisconsin community that has long been entwined with auto making.

The union said that GM's decision will likely create a ripple effect in terms of job loss in Janesville. There will be a loss of 2,600 jobs at the GM plant itself, but the numbers of lost jobs could total 4,000 more in the coming years.

"This decision will not only impact our members at GM, but also locations tied to our production, such as LEAR Seating, LSI, Allied and Airmark," said Brad Dutcher, incoming president of United Auto Workers Local 95.

Economic experts in Janesville said that of the three companies tied most closely with GM -- Lear, LSI and Allied Transport -- GM made up most, if not all, of their business. But companies that provided uniforms, vending and other services are also expected to take a hit.

Workers, Union React To GM's Announcement

Most workers at the Janesville General Motors plant seemed resigned at Tuesday's announcement that the plant will shut down in the next year and a half.

But union officials said they will try to convince the company to bring in a new product and keep it open.

Dutcher said that by no fault of the workers, the market has been shifted to smaller, more fuel efficient vehicles. The Janesville plant makes Chevy Suburbans and Tahoes, and GMC Yukon and Denali SUVs.

"Sales have dropped; the SUV market isn't there. We continue to deal with politicians in the White House that don't want to do anything to fix the economy and continue to let the erosion of the middle class take place," said John Dohner Jr., chair of the Shop Committee for UAW Local 95.

Longtime employees like Bill Donovan, who has done maintenance at the plant for more than 30 years, said they're not shocked by the announcement. Donovan said he had expected it to happen sooner than now.

"Over the last few months, with all the buyouts and everything, it's been something that you could kind of see might be coming -- but hopefully not," said Leo Carrillo, a GM employee for the last eight years. "It's just not what I had expected right now, as far as today. It's all just kind of sinking in a little bit."

Workers throughout the city said they want to believe the plant could be saved before the last SUV rolls off the assembly line in 2010.

But unlike past years when the plant's future seemed grim, on Tuesday, fear of what the future holds was evident.

"It's devastating. I've got two daughters who relay on their income from Lear Corporation, and my youngest son is at GM," said retired GM employee Bill Dreidenstein.

The sentiment was echoed by local union leaders.

"One thing you have to understand about General Motors, they're going to plant their flag in whatever country they can to make money," Dohner Jr. said. "It's not about America. It's about making money for their stock holders. That's what they're all about. They don't care about the workers."

Scott Lambert has worked at the plant for 13 years. Lambert said that there were some tears and a lot of people were "ticked off" following the announcement today, but he says it's all part of the business.

The 39-year-old autoworker planned to buy an atlas to figure out where other GM plants were located and where the company might be hiring.

Ray Stafford retired from the Janesville plant in 1988 after working there for 33 years. The 77-year-old Stafford said that workers have faced the possibility of the plant closing for a long time. He said that as gas prices rose, it was probable GM would phase out production of the large SUVs -- Suburbans, Tahoes, GMC Yukon and Denali models.

Workers said that until they're told otherwise, they'll still show up and work just as many have for years. They said they don't have much time to prove to General Motors that the Janesville assembly plant should remain open.

Doyle Decries GM's Decision

Gov. Jim Doyle spoke with Janesville union officials at a union hall on Tuesday afternoon. (For more, keep reading)

The governor said that GM's announcement is in many ways "like hearing about a death in the family."

"We're trying to sort out our emotions and figure out where we are going," Doyle told autoworkers.

But the governor also said that the state will work with the city and other local governments to make sure good jobs are brought to the area.

"After all the years of work and everything the people of Janesville have given, it is tough to stomach what GM is doing here today," Doyle said in the statement. "So many people here have put their hearts into building trucks at the Janesville assembly plant, and now they are left with a cold decision that casts them aside. We all feel it in our guts."

Doyle said he'll work to keep jobs for workers he called the "pride of the state" in the community, but that he will also prepare for the worst.

"We also have to be realistic and start working as well with families and individuals to make sure that people land on their feet," Doyle said.

The Department of Workforce Development has already dispatched response teams to the area, and is petitioning for federal assistance for workers because jobs are going overseas.

Political Leaders Weigh In On Announcement

U.S. Sen. Barack Obama, D-Ill., released a statement saying that he empathized with the workers.

"My heart goes out to the workers and families affected by the closing of these GM plants, including the Janesville plant that I visited a few months ago," Obama said in the statement.

The Democratic presidential contender blamed President George W. Bush's economic policies for the plant's closing.

U.S. Sen. Herb Kohl, D-Wis., issued a statement asking GM officials to repay workers' loyalty to the company.

"The community of Janesville depends on these jobs, and I will do everything in my power to convince General Motors to reconsider their decision or help their employees find new work." Kohl said in the statement.

He said that he'd urge the U.S. Labor Department to make job training and transitional assistance available for Janesville workers.

U.S. Sen. Russ Feingold, D-Wis., said in a statement that he wants to consider retooling the plant.

"GM should immediately take steps to ensure the continued success of the GM plant including retooling the plant for new production lines," Feingold said in the statement. "The people of Janesville have worked too hard for too long to deserve anything less."

U.S. Rep. Paul Ryan, R-Wis., who is from Janesville, said that he believes the community will recover.

"Today’s news is downright gut-wrenching for Janesville," Ryan said in a statement. "If GM's plans are fully carried out, this would be a big psychological and economic blow to our community and our state."

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.