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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.

Chevrolet considering midsize crossover to slot between Traverse and Equinox

Crossovers are the new hotness, and automakers are looking to cash in by offering a size and shape for every customer. With Chevrolet's debut of the new 2018 Traverse in Detroit, which grew ever so slightly compared to the first-generation model, there is now a midsize-crossover-sized hole between the three-row Traverse and the compact Equinox. When asked about that obvious space, a Chevrolet spokesperson told us the company is looking into the possibility of expanding its crossover lineup. It should be a relatively simple thing to do, since all it would take is reskinning and rechristening the GMC Acadia with a bow tie, and we all know how much GM loves platform sharing. Although they're now different sizes, the new Acadia and Traverse still use the same platform; the Acadia is now on a short-wheelbase version of the C1XX while the Traverse uses long-wheelbase C1XX parts. A short-wheelbase Chevy built on the C1XX likely would be differentiated visually from both the Acadia and the larger Traverse. It may seem like flooding the lineup with more and more models would cannibalize sales of existing ones, but Chevrolet said it would rather have customers stay within the brand rather than going to another automaker. There have been whispers that some form of the Blazer name (possibly TrailBlazer) may make a return on a midsizer, but if it does don't expect an old-school body-on-frame SUV like the old one. In the end, if Chevy builds it, customers will come. Related Video:

2018 GMC Sierra 2500HD All Mountain concept: Nothing stops it in its tracks

Winter may not be the best time for sports cars, but snow and ice can still provide a ton of fun in the right vehicle. The Porsche Macan GTS I had back in January was a riot in the snow, and it was wearing nothing more than a good set of winter tires. What you really need to conquer the frozen north is tracks. These replace wheels with the same sort of equipment that helps tanks and snowmobiles roll over damn near everything in their paths. That's what makes the 2018 GMC Sierra 2500HD All Mountain concept so awesome. That and the 910 pound-feet of torque from the 6.6-liter Duramax turbo diesel V8. The All Mountain concept is set to debut this week in Veil, Colorado, home to ski slopes, log cabins and nearly year-round snow pack. The truck is based off a standard GMC Sierra 2500HD. The turbo-diesel V8 makes 445 horsepower in addition to the mountain of torque. Power is sent to all four corners through an Allison 1000 six-speed automatic. The new treads come courtesy of Mattracks. The 150 Series tracks aren't cheap — well into five figures with installation — but they give you a nice 16-inch surface at each corner. Other changes and add-ons include graphics on the bodywork, a RIGID E-Series 30-inch light bar, LEDs on the wheel well and underbody, Thule snowboard racks, a roll-up tonneau cover and a new speaker system from Kicker. The truck will stay on display in Veil all winter, though a similar concept will be making its way to various auto shows, starting with Los Angeles next week. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery GMC Sierra All Mountain Concept: LA 2017 View 9 Photos Related Gallery 2018 GMC Sierra 2500HD All Mountain concept View 10 Photos News Source: GMCImage Credit: Live photos copyright 2017 Drew Phillips / Autoblog.com GMC Truck Off-Road Vehicles