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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 tinkering with Silverado, Sierra model mix amidst strong early sales

Variety, as they say, is the spice of life. That's a lesson that is currently being taught to General Motors, because despite a strong showing from its 2014 Chevrolet Silverado and GMC Sierra, the General's pickup sales still can't best those of cross-town rival Ford.
With 59,163 trucks moved, GM fell just over 1,000 units short of toppling Ford, and one of the main reasons for that, according to GM's chief sales analyst, was due to a lack of variety in the engines and body styles available on dealer lots. "We are still over-weighted toward crew-cab V8 trucks. Our light-duty mix will moderate over time as our launch progresses," said Kurt McNeil.
Loading dealers with the popular combination of the 5.3-liter V8 and the four-door, Crew Cab body style was intentional during the truck's launch, but as supplies of leftover 2013 models, which are being sold at heavy incentives, are beginning to wane, both budget-conscious and high-dollar buyers are looking elsewhere instead of at the volume model pickups.

Why the Corvette's Performance Data Recorder can be illegal in some states

The Performance Data Recorder with Valet Mode available on the 2015 Chevrolet Corvette Stingray seems like a fantastic tool for many owners. Whether they are taking 720p video while lapping the track in their new 'Vette, or just want to protect their purchase from inconsiderate joyriders, the system offers a lot of functionality in one package. However, one of the PDR's features might get buyers in trouble with the law, and it has nothing to do with recording some illicit high-speed driving on a favorite back road. The problem hinges on the various state laws concerning a person's right to privacy.
According to a letter posted by Jalopnik, Chevy dealers are asking 2015 Corvette owners not to use the Valet Mode portion of the PDR because it records audio in the cabin, in addition to performance specs. That's a problem because privacy laws vary from state to state with some requiring just one side's consent to tape sound and others requiring all parties to agree. According Jalopnik, 15 states mandate everyone's permission beforehand, but it's not clear whether these numbers are up to date. (Actually, the report varies, saying 13 states in some places and 15 in a list.)
According to the letter, Chevy is already working on a software update for the near future to rectify the issue. It's possible that simply adding a warning to drivers and the ability to turn off the audio recording function in Valet Mode might solve the problem. Obviously, this doesn't preclude Corvette drivers from using the performance aspect of the PDR, and owners are free tape lap after lap at the track.