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5 reasons why GM is cutting jobs, closing plants in a healthy economy

DETROIT — Even though unemployment is low, the economy is growing and U.S. auto sales are near historic highs, General Motors is cutting thousands of jobs in a major restructuring aimed at generating cash to spend on innovation. It's the new reality for automakers that are faced with the present cost of designing gas-powered cars and trucks that appeal to buyers now while at the same time preparing for a future world of electric and autonomous vehicles. GM announced Monday that it will cut as many as 14,000 workers in North America and put five plants up for possible closure as it abandons many of its car models and restructures to focus more on autonomous and electric vehicles. The reductions could amount to as much as 8 percent of GM's global workforce of 180,000 employees. The cuts mark GM's first major downsizing since shedding thousands of jobs in the Great Recession. The company also said it will stop operating two additional factories outside North America by the end of next year. The move to make GM get leaner before the next downturn likely will be followed by Ford Motor Co., which also has struggled to keep one foot in the present and another in an ambiguous future of new mobility. Ford has been slower to react, but says it will lay off an unspecified number of white-collar workers as it exits much of the car market in favor of trucks and SUVs, some of them powered by batteries. Here's a rundown of the reasons behind the cuts: Coding, not combustion CEO Mary Barra said as cars and trucks become more complex, GM will need more computer coders but fewer engineers who work on internal combustion engines. "The vehicle has become much more software-oriented" with millions of lines of code, she said. "We still need many technical resources in the company." Shedding sedans The restructuring also reflects changing North American auto markets as manufacturers continue to shift away from cars toward SUVs and trucks. In October, almost 65 percent of new vehicles sold in the U.S. were trucks or SUVs. That figure was about 50 percent cars just five years ago. GM is shedding cars largely because it doesn't make money on them, Citi analyst Itay Michaeli wrote in a note to investors. "We estimate sedans operate at a significant loss, hence the need for classic restructuring," he wrote. The reduction includes about 8,000 white-collar employees, or 15 percent of GM's North American white-collar workforce. Some will take buyouts while others will be laid off.

Before Chevrolet's Redline, there was the Saturn Red Line

While Chevy rolls out Redline special editions across more of the lineup at this year's Chicago Auto Show, we've been eating some 'member berries and started thinking about the last time GM used the term. Back in 2004, Saturn rolled out Red Line (two words) editions of the Ion and Vue. The lineup was joined by the Sky Red Line in 2007, and the second-generation Vue kept the tradition going in 2008. This was in the heady days of the mid-2000s, before the financial crisis and GM's bankruptcy reorganization that saw the end of Saturn. The press release headline for the 2008 Sky is now cringe-worthy: "Hot-selling Sky helps drive Saturn product renaissance." Performance lineups were the hot new thing, as automakers attempted to cash in on the tuner trend popularized by The Fast and the Furious. Chevy had SS models, Pontiac had GXP, and Saturn had Red Line. Across the Detroit Metro area, Dodge had a slew of SRT models, and Ford's Special Vehicle Team brought us the SVT Lightning pickup, the SVT Focus, and a smattering of hopped-up Mustangs. The performance cred of Red Line models varied from car to car. The Ion Red Line shared the same engine as the original Chevy Cobalt SS, a 205-horsepower supercharged 2.0-liter four-cylinder, 65 hp more than stock. Car and Driver tested one with a 0-to-60-mph time of 6.1 seconds and said the Ion "tears down the wall that has separated enthusiasts from the Saturn brand for so long." The Vue Red Line, meanwhile, came with the same optional Honda-sourced 3.5-liter V6 you could get in the regular Vue, and added a stiffer, lower suspension, bigger wheels with more aggressive rubber, and recalibrated steering assist. When the Vue was redesigned for the 2008 model year, the Vue Red Line was a similar proposition. The engine was now from GM, and up 7 horsepower to 257, but you could get it in both Red Line and XE trim. Aside from the tire and suspension upgrades, Red Line models now came with a unique front fascia and rear exhaust cutouts. The most exciting Red Line, of course, was the high-performance version of the Sky roadster, which shared underpinnings with its Pontiac Solstice twin. This model came with GM's hot 2.0-liter Ecotec Turbo, good for 260 horsepower. The extra power was crucial in covering up the Sky's unfortunate manual gearbox ratios, which left the non-turbo model aching for torque in lower gears. As we all know, Saturn was taken by the grim reaper in 2009 after an attempt to sell the brand to the Penske Group.

Here's why automakers roll out those Texas-themed pickup trucks

Every year, automakers with a full-size truck link make a big show of the Texas State Fair, usually involving a reveal of a new model. Sometimes they show a whole new truck, and other times a special edition centered on the Lone Star state. While some people might write this off as a quirk of the industry, others might be wondering, "What's the big deal with Texas?" As it turns out, part of the big deal with Texas is big truck sales. According to Dave Sullivan, product analysis manager at AutoPacific, Texas buys more trucks than any other state in the country. It's not a small margin either. Edmunds.com, one in five trucks sold in the US are sold in Texas. The state also accounts for 15 percent of the country's large truck sales, which is more than twice that of California, the second largest truck market in America. Even when you break down sales only in Texas, trucks are a huge piece of the pie - Sullivan says that a quarter of new vehicle sales in Texas are trucks. One in five trucks sold in the US are sold in Texas. But it's not just sales that make truck builders give attention to Texas. As Sullivan explained, "Pickups are life in Texas." Both he and Hugh Milne, marketing and advertising manager for the Chevy Silverado line, said that trucks are key fixtures in Texas society, as both work trucks and luxury vehicles (or Texas Cadillacs as Milne called them). Milne said Texas is so important in the truck market that if you want to be successful in the rest of the country, "you've got to be successful in Texas." As for the State Fair, it has become a prime location for reveals in part because of the importance of the Texas market and because of how big the fair is. Milne also revealed that the State Fair also hosts its own auto show, so it's an ideal venue for a vehicle introduction. So there you have it. Why do truck builders obsess over Texas? It's because Texas obsesses over trucks. When you have one market that loves your product that much, you give it the attention it deserves. Related Video: Image Credit: Donovan Reese via Getty Images Auto News Marketing/Advertising Chevrolet Ford RAM Truck f-150 texas state fair