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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.

2016 Green Truck of the Year, Commercial Green Car of the Year finalists

Not only are commercial-grade haulers getting more green love lately, they're getting more different kinds of green love. The 2016 Green Truck of the Year, the second time the award has been handed out, is being decided by judges from Green Car Journal and the San Antonio Auto & Truck Show. This year the award is joined by the new 2016 Commercial Green Car of the Year, which crowns one of the little vans increasingly used by small business as cargo and delivery vehicles. The Green Truck of the Year finalists are the Chevrolet Colorado Duramax (pictured), Ford F-150, GMC Canyon Duramax, Nissan Titan XD, and Toyota Tacoma. The first three of those were on last year's list, but since they are completely new or upgraded for 2016 - Ford with its all-aluminum body, the General Motors twins with the new diesel Duramax engine - they qualify for entry again. The Ram 1500 EcoDiesel won last year. The Commercial Green Car finalists are the Chevrolet City Express, Ford Transit Connect, Mercedes-Benz Metris, Nissan NV200, and Ram ProMaster City. You can read more details in the presser below, and the awards will be announced in San Antonio sometime during the show from November 19-22. San Antonio Auto & Truck Show Announces 2016 Green Truck of the Year and Commercial Green Car of the Year Finalists SAN ANTONIO, Oct. 22, 2015 /PRNewswire/ -- Green Car Journal and the San Antonio Auto & Truck Show have announced finalists for the 2016 Green Truck of the Year™ and 2016 Commercial Green Car of the Year™ awards. The Green Truck of the Year™ nominees are the Chevrolet Colorado Duramax, Ford F-150, GMC Canyon Duramax, Nissan Titan XD, and Toyota Tacoma. Vying for the all-new 2016 Commercial Green Car of the Year™ award are the Chevrolet City Express, Ford Transit Connect, Mercedes-Benz Metris, Nissan NV200, and Ram ProMaster City. "Over the past few decades, new car models have benefitted from design and technology improvements that have brought higher fuel efficiency and greater levels of environmental compatibility," said Green Car Journal and CarsOfChange.com Editor and Publisher Ron Cogan. "With models like these ten deserving finalists, we're witnessing the pickup and light commercial vehicle field enjoying the same attention." The new Commercial Green Car of the Year™ award is part of an expanded awards program presented at this year's 2015 San Antonio Auto & Truck Show.

GM follows up Lambda CUV stop-sale with tire recall

In late January, General Motors announced a stop-sale for about 6,281 examples of the 2015 Chevrolet Traverse, GMC Acadia and Buick Enclave because of the possibility for the treads cracking on their 18-inch Goodyear Fortera HL tires. At the time, GM said that this would also eventually lead to a safety campaign to repair the problem, and the National Highway Traffic Safety Administration has just published those details. GM's recall covers 5,876 of the three Lambda platform crossovers to replace their tires. According to NHTSA, if the treads crack, there could be a loss of pressure and possible failure. Goodyear already announced its own recall of the tires after internal testing found small tread cracks. The company did not believe this was safety issue, but the problem did put the rubber out of compliance with federal laws. The business's safety campaign covered an estimated 48,512 tires. Of those, around 32,000 were reportedly made for GM to either be fitted to vehicles or sold as replacements. The remainder went to the aftermarket. Goodyear's portion of the recall is expected to begin around February 20. RECALL Subject : Tire Tread Cracking/FMVSS 110 Report Receipt Date: JAN 28, 2015 NHTSA Campaign Number: 15V044000 Component(s): TIRES Potential Number of Units Affected: 5,876 All Products Associated with this Recall Vehicle Make Model Model Year(s) BUICK ENCLAVE 2015 CHEVROLET TRAVERSE 2015 GMC ACADIA 2015 Details Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2015 Buick Enclave vehicles manufactured December 9, 2014, to January 14, 2015, 2015 Chevrolet Traverse vehicles manufactured December 9, 2014, to January 20, 2015, and 2015 GMC Acadia vehicles manufactured December 9, 2014, to January 16, 2015, and all equipped with Goodyear P255/65R18 Fortera HL tires. These vehicles are equipped with tires that may experience tread cracking. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 110, "Tire Selection and Rims and Motor Home/Recreation Vehicle Trailer Load Carrying Capacity Information for Motor Vehicles with a GVWR of 4,536 kilograms (10,000 pounds) or Less." CONSEQUENCE: If the tire treads crack, a loss of tire pressure and possible tire failure may result, increasing the risk of a crash. REMEDY: GM will notify owners, and dealers will replace the tires that were manufactured within a specific date range, free of charge.