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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.

Comedians in Cars Getting Coffee teases return with a Countach

Unless you have an intense aversion to Jerry Seinfeld, it's hard not to find something to like about his show Comedians in Cars Getting Coffee. After all, the series combines funny people telling often hilarious stories while riding in ridiculously cool vehicles. The trailer for the sixth season is now online, and based on this tease, this definitely looks worth watching no matter what part of the videos interest you. Of course, it's the automotive portion that really grabs us, and Seinfeld has quite a fleet to showcase for season six. The trailer shows off a Lamborghini Countach, a '57 Chevrolet Bel Air convertible, a classic Volkswagen Beetle in the green and white German Polizei livery, a Morgan, an Aston Martin DB5, and a Ferrari 308. On the more humorous side of things, the guest list at least includes Julia Louis-Dreyfus, Jim Carrey, Steve Harvey, Stephen Colbert, Bill Maher and upcoming host of The Daily Show Trevor Noah. Season six of Comedians in Cars Getting Coffee premieres on Crackle on Wednesday, June 3, at 11:30 PM ET.

Recharge Wrap-up: Tesla sells Model S 85 and 70D in Malaysia, Chevy Spark EV built using clean energy

Tesla will send Model S 70D and Model S 85 EVs to Malaysia for leasing to government-linked companies. Only those companies will have access to the models as a two-year lease, which will be imported and leased by Malaysian Green Technology Corporation. The plan is part of an initiative by the Ministry of Energy, Green Technology and Water to allow government officials and other influential people to get to know the electric vehicles and the benefits that come along with them. Most of the 120 vehicles available will be the 70D model, and the lessee companies will have the option to purchase the cars at the end of the two years. Read more from Paul Tan's Automotive News. Wanxiang is hosting students from Delaware in China as part of a program to learn Mandarin and visit schools and science and technology sites. Wanxiang, the auto parts company that acquired Fisker (which had manufacturing based in Delaware) and battery maker A123 Systems, will give the students tours of its solar technology facilities, among other places, and see what daily life is like for families in the region. The program helps students interested in science and technology to foster marketable skills — like learning a foreign language — that will help them get jobs in industries around the world. Read more at Delaware Online. The Chevrolet Spark EV's electric motor (pictured) and drive unit are manufactured using clean energy. The e-motors building of the General Motors Baltimore Operations complex has a new rooftop solar array and uses LED and CFL lighting, helping the building recently earn LEED Silver certification. The landfill-free facility also takes advantage of the 1.23-megawatt solar array on the grounds, helping it source six percent its energy from renewable sources. The plant has reduced its energy intensity by 15.5 percent in three years, and continues to work toward reducing consumption and sourcing clean energy. "We believe reducing our environmental footprint is good for the climate and good for our business," says GM Executive Director of Global Public Policy Greg Martin. Read more in the press release below. Spark EV Motor Plant Fueled by Green, Clean Energy ENERGY STAR®, USGBC and Maryland state agency recognize facility's efforts WHITE MARSH, Md. – Chevrolet recently began selling the Spark EV to Maryland commuters able to take advantage of the state's robust charging infrastructure.