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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 recall woes continue with 662,000 pickups trucks and Cruze sedans

General Motors can't seem to get its name out of the "bad news" column. Two more recalls were announced late Friday evening that will see The General calling in 490,200 fullsize pickup trucks and SUVs, along with 172,000 Chevrolet Cruze models.
For those keeping track, General Motors has issued recalls for an alarming 4.8 million vehicles so far since last month.
The Chevy Silverado 1500, Tahoe and Suburban, GMC Sierra 1500 and Yukon models from the 2014 and 2015 model years are being recalled for a flaw in their transmissions wherein loose oil cooler lines may cause a fire. The automaker said in a statement (see below) that it knows of three incidents of loose transmission lines causing problems, but no injuries. We can't confirm whether it was this transmission issue that caused the widely publicized blaze that consumed a 2015 GMC Yukon that was being test driven in California.

2020 GMC Sierra HD offers loads of tech

The 2020 GMC Sierra HD has finally been revealed, and it's a heck of a lot more subtle than the Silverado HD. Whereas the Chevy went with a wildly exaggerated version of the split grille and headlights the truck is known for, the Sierra simply builds on the 1500 model's design with an expanded grille that doesn't appear to be as tall or wide as the Chevy's. That's not to say it looks unimpressive, though. It's still got a massive fascia, it's just not as extreme as the one with a bowtie on it. With the Sierra's unveiling, we get more details about the powertrains available on the heavy duty GM trucks. The 6.6-liter turbocharged Duramax V8 makes 445 horsepower and 910 pound-feet of torque. That's the exact same output as the engine in the old models. But this time, the engine will be mated to an Allison-branded heavy duty version of the GM 10-speed transmission. A gas engine will also be available, but GMC hasn't revealed details on it yet. The new Sierra boasts a range of new features, some that are unique to it, and some shared with the Silverado. A shared feature is the new steps in the bed sides that are standard on all Sierra HD models. Unique to the brand is the MultiPro tailgate with fancy drop-out step. This tailgate will be available on all trims, and it's standard starting with the mid-level SLT. There are some useful visibility features being shown on the new Sierra, too, such as an available trailer camera system with 15 possible viewpoints, and it can virtually show the rear view on the screen as if there wasn't a trailer in the way. GM's rear-view mirror screen also makes an appearance. An AT4 off-road trim will be available on the new Sierra HD. It has slightly different styling with dark grilles and trim. Off-road upgrades include reworked springs and shocks, skid plates, standard all-terrain tires and a locking rear differential. Pricing has not yet been announced, but the truck goes on sale this summer. Details on prices as well as further specifications will likely be announced near the on-sale date. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.