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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.

2015 Chevy Volt will be available with 4G LTE

General Motors teased consumers two years ago when it showed off a Chevrolet Volt decked out with 4G LTE connectivity. More details were finally unveiled this month at the Consumer Electronics Show in Las Vegas: the 2015 Chevy Volt will have a 4G LTE option and will offer consumers an as-yet-unpriced option with much faster wireless internet connection and more smartphone apps. GM's OnStar has teamed up with AT&T to come up with several mobile apps alongside the roadside assistance. The Volt joins the 2015 Corvette, Impala and Malibuz models that will debut with a 4G LTE option this year. The first four 4G ChevroLTE models will be released this summer and will be joined by the Spark (EV and gas versions), Equinox, Silverado and Silverado HD. GM has yet to announce whether any Cadillac or Buick models will get the 4G option. Chevrolet Accelerates to 4G LTE Speeds in 2014 Bowtie brand models in U.S. and Canada to get OnStar 4G LTE by summer LAS VEGAS – Starting this summer, Chevrolet will have some of the fastest vehicles on the roads, and that has nothing to do with horsepower. Chevrolet drivers will be enjoying high-speed data - made possible by a new OnStar 4G LTE connection in the vehicle, running on AT&T's network, the nation's fastest and most reliable 4G LTE network. Chevrolet today announced at the Consumer Electronics Show that the 2015 Chevrolet Corvette, Impala, Malibu, and Volt would be the first General Motors' vehicles to come optionally equipped with OnStar 4G LTE. They will be followed by the Equinox, Silverado, Silverado HD, Spark and Spark EV. In the Canadian market, OnStar with 4G LTE will be introduced on the Chevrolet Trax as well. The majority of the 2015 Chevrolet lineup in the U.S and Canada will have a 4G LTE connection built-in at vehicle launch. More models will be announced later this year. "Chevrolet is expected to implement the broadest deployment of 4G LTE in the automotive industry," said Alan Batey, senior vice president of Global Chevrolet. "The fact that OnStar with 4G LTE will be available in models that range from the Chevrolet Spark to the Silverado to the Corvette, is indicative of our broad commitment to deliver more value and convenience through smart technology applications.

Weekly Recap: Revisting the BBC report that ended Jeremy Clarkson's Top Gear run

Jeremy Clarkson's long run as a Top Gear host has come to an end, and the reason is clear: His physical assault on one of the show's producers crossed a line, and the government-owned BBC couldn't tolerate it. The incident between Clarkson and Top Gear producer Oisin Tymon was initially described as a "fracas," and Clarkson was suspended. But his popularity and widespread support – even British Prime Minister David Cameron weighed in – suggested that the controversial Clarkson might be given yet another chance. The BBC put this to rest Wednesday when it sacked Clarkson and revealed the findings of its investigation. The report spelled out how Clarkson struck Tymon on the patio of a North Yorkshire (UK) hotel, leaving him with a bloodied, swollen lip. It was severe enough that the producer sought medical treatment. During and after the attack, Clarkson shouted expletives at Tymon and threatened to fire him. The noise carried into the hotel's dining room and even to a bedroom. Local police investigated the incident, but Tymon isn't pressing charges. The huge audience numbers, Clarkson's popularity and the high-octane excitement of Top Gear all melted away in the eyes of BBC director-general Tony Hall, who saw an attacker and a victim. "For me a line has been crossed," he said in a statement. "There cannot be one rule for one and one rule for another dictated by either rank, or public relations and commercial considerations." In that moment, Clarkson was the bad guy, though he was actually the one who reported it to the network and made repeated attempts to apologize to Tymon. He's also urged the media to leave the producer alone. Hall voiced regret in the statement that announced Clarkson's contract would not be renewed, but the BBC decided to move on. Rumors are swirling about possible replacements for Clarkson. The network says it wants to continue Top Gear in 2016 and is looking to air the rest of this season's episodes. Despite the controversy, the show has a global audience of 350 million viewers and is one of the BBC's most valuable properties. It's unclear what Clarkson's co-hosts, James May and Richard Hammond, will do, as their contracts were also reportedly up to be renewed. Other News & Notes 2016 Chevrolet Malibu hybrid charges up with Volt technology Chevrolet is taking some of the learnings and technologies from the 2016 Volt and dropping them into the reborn Malibu hybrid.