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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.

GM natural gas-powered vans recalled due to possible leak

General Motors is recalling almost 3,200 of its compressed-natural-gas powered utility vans because of possible leaks. GM and the National Highway Traffic Safety Administration (NHTSA) released a notice last week saying that 3,196 Chevrolet Express and GMC Savana CNG vans are on recall, though no accidents have been reported due to the possible issue. The recall is specifically for vans for model years ranging from 2011 to 2014. The recall stems from a potential leak from the compressed natural gas high-pressure regulator, and such a leak could cause a fire or explosion. GM will replace the vehicles' high-pressure regulator in order to fix the problem, will do it free of charge and is instructing owners to contact Chevrolet or GMC customer service to arrange for the parts replacement. Utility vehicle makers like General Motors have pushed for fleet sales of CNG-powered vans and trucks for the past few years and have touted them for their cheaper refueling costs relative to standard gasoline, not to mention the fact that natural gas can be readily sourced from throughout North America (thanks, fracking). According to CNGPrices.com, compressed natural gas sells for about $2.22 a gallon, on average, while the AAA is pegging the average price of gas at $3.34 a gallon. NHTSA has posted information on the recall here. Featured Gallery News Source: NHTSA via Reuters Green Chevrolet GM GMC Natural Gas Vehicles CNG gmc savana

Stop-start standard in four-cylinder 2015 Chevrolet Impala

Chevrolet has announced that it will include stop-start technology as standard in the entry level 2015 Impala. The result is a nearly five-percent improvement in city fuel economy, also known as one mile per gallon, up to 25 mpg, combined. The 3.6-liter V-6 Impala will not feature stop-start. The 2015 Impala comes equipped with Chevrolet's 2.5-liter Ecotec four-cylinder engine, which will also offer 22 mpg in the city, and 31 on the highway. The 3.6-liter V-6 Impala will not feature stop-start and the mild-hybrid eAssist model from the 2014 MY, which got 29/25/35 combined/city/highway mpg, has been discontinued. Chevrolet spokesman Chad Lyons told Green Car Reports that not even one percent of the 2014 Impalas purchased were the Eco model. So Chevy is trying something different. With a seamless driving experience in mind, the new Impala's stop-start tech features software that governs under what conditions the feature will activate. The engine won't shut off if the car has not reached a speed of six miles per hour, so the start-stop won't be cycling during traffic jams. It can also fire the starter even if the engine has not come to a full stop, which quickens reaction time, particularly in instances of what Chevrolet calls "change-of-mind events." The stop-start function uses information about cabin temperature and humidity as well as battery charge to help determine whether or not to shut off the engine. The 2015 Impala has been engineered to reduce NVH, which will also help create a smoother stop-start experience for occupants, Chevy says. Motor mounts have been updated, and a burlier starter motor will help restart the engine after a stop. The Impala follows the 2014 Malibu as Chevrolet's second vehicle to feature stop-start tech. The four-cylinder model currently makes up over 30 percent of Impala sales. The 2015 Impala will be available beginning this summer, with a base MSRP of $27,735 (including destination charges). And while one MPG isn't a huge difference, neither is the price increase of just $50 for a bit of eco-minded innovation. Read on for more details in the press release below. Chevrolet Makes Stop/Start Standard in 2015 Impala Technology improves city fuel economy by 5 percent 2014-05-22 DETROIT – Stop/start technology will be standard on the 2015 Impala base 2.5-liter ECOTEC® engine, an addition that improves the vehicle's city fuel economy by nearly 5 percent, or one mile per gallon.