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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.

The Opel GT is the concept General Motors should build for the US

Now is the time. General Motors should double-down on performance cars and build the Opel GT concept that's set to debut next week at the Geneva Motor Show. Better yet, sell it in the United States as the Chevy GT. Consumers are showing a thirst for performance cars not seen in decades. Ford has them coming in waves, with everything from the F-150 Raptor to a hotted-up Fusion. FCA US is unrepentantly building loads of Hellcats. GM should respond. The General's cupboard is hardly bare. With the Corvette, Camaro, and Cadillac's V-Series, GM has more than enough to compete with its crosstown rivals and anything Europe or Japan can throw at it. But there's also an opportunity. There's not many front-mid-engine, rear-wheel-drive, two-seat sports cars out there like the Opel GT concept. A Chevy GT that used that layout and captured some of the concept car's proportions and curves would ignite a different kind of passion in enthusiasts. It would be Miata-like. With Chevy branding, this sports car would be the everyday exotic. The concept has a turbocharged 1.0-liter three-cylinder engine, which makes about 143 horsepower to motivate a structure that weighs less than 2,200 pounds. It can hit 60 miles per hour in less than eight seconds. All of those numbers are within the front-engined Miata's territory. This new Opel is inspired by two great mid-1960s concepts that helped put its design studio, and that of its sister brand, the British Vauxhall, on the map. (The GT concept is also technically a Vauxhall, as the brands are linked in GM's European strategy.) One of them, the '66 Vauxhall XVR remained a concept. The '65 Opel Experimental GT was on the road by 1968. That shows this is doable. There's precedent. The Saturn Sky and Pontiac Solstice shared a chassis with a modern GT during that trio's brief run. If GM ever makes this concept, Opel and Vauxhall should get their versions. But Chevy is the one that could make this car a global icon. Chevrolet GT. Make it happen. News & Analysis News: The potential return of the Ford Bronco is generating a ton of attention. Analysis: That's not news, per se. But when the Bronco6G.com fan site did a rendering of a next-generation Bronco, it almost broke the Internet. Everyone from Automotive News to Jalopnik picked up the illustrations. Our own post has drawn a lot of traffic and passionate responses. People are clamoring for the Bronco's return.

Bring back the Bronco! Trademarks we hope are actually (someday) future car names

Trademark filings are the tea leaves of the auto industry. Read them carefully – and interpret them correctly – and you might be previewing an automaker's future product plans. Yes, they're routinely filed to maintain the rights to an iconic name. And sometimes they're only for toys and clothing. But not always. Sometimes, the truth is right in front of us. The trademark is required because a company actually wants to use the name on a new car. With that in mind, here's a list of intriguing trademark filings we want to see go from paperwork to production reality. Trademark: Bronco Company: Ford Previous Use: The Bronco was a long-running SUV that lived from 1966-1996. It's one of America's original SUVs and was responsible for the increased popularity of the segment. Still, it's best known as O.J. Simpson's would-be getaway car. We think: The Bronco was an icon. Everyone seems to want a Wrangler-fighter – Ford used to have a good one. Enough time has passed that the O.J. police chase isn't the immediate image conjured by the Bronco anymore. Even if we're doing a wish list in no particular order, the Bronco still finds its way to the top. For now (unfortunately), it's just federal paperwork. Rumors on this one can get especially heated. The official word from a Ford spokesman is: "Companies renew trademark filings to maintain ownership and control of the mark, even if it is not currently used. Ford values the iconic Bronco name and history." Trademarks: Aviator, AV8R Company: Ford Previous Use: The Aviator was one of the shortest-run Lincolns ever, lasting for the 2003-2005 model years. It never found the sales success of the Ford Explorer, with which it shared a platform. We Think: The Aviator name no longer fits with Lincoln's naming nomenclature. Too bad, it's better than any other name Lincoln currently uses, save for its former big brother, the Navigator. Perhaps we're barking up the wrong tree, though. Ford has made several customized, aviation themed-Mustangs in the past, including one called the Mustang AV8R in 2008, which had cues from the US Air Force's F-22 Raptor fighter jet. It sold for $500,000 at auction, and the glass roof – which is reminiscent of a fighter jet cockpit – helped Ford popularize the feature. Trademark: EcoBeast Company: Ford Previous Use: None by major carmakers.