1969 Gmc Sierra 1500 on 2040-cars

Auto blog

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 CEO to meet with U.S. lawmakers over job cuts

WASHINGTON — General Motors Co Chief Executive Mary Barra plans to visit Capitol Hill next week to discuss the company's plans to halt production at five plants in North America next year and cut up to 15,000 jobs, two congressional aides said on Friday. GM has come under harsh criticism from lawmakers from both major political parties, and from President Donald Trump, since Monday when it announced the biggest restructuring for the U.S. No. 1 carmaker since its bankruptcy a decade ago. Barra is expected to meet with lawmakers from Michigan and Ohio, where GM plans to shutter three plants, as well as senior leaders in Congress. GM did not immediately comment. Barra has been calling lawmakers this week to explain the decision to end production. Trump has threatened to revoke subsidies for GM. The Detroit automaker plans to halt production next year at three assembly plants: the Lordstown small-car factory near Youngstown, Ohio; the Detroit-Hamtramck complex in Detroit; and the Oshawa, Ontario, assembly complex near Toronto. It will also stop building several models now assembled at those plants, including the Chevrolet Cruze, the Chevrolet Volt hybrid, the Cadillac CT6 and the Buick LaCrosse. Additionally, GM plans to shutter the Warren transmission plant outside Detroit and a plant that makes electric motors and drivetrains outside Baltimore, Maryland. The Cruze compact car will be discontinued in the U.S. market in 2019, although GM may continue building it in Mexico for other markets, Barra said. Reporting by David Shepardson. Related Video:

Second part of Forza Horizon 3 car list revealed early

We previously brought you the first portion of Forza Horizon 3's list of 350 cars last week, and today we're bringing you part two. Apparently Fairfax Media in Australia had the list and images early and published them on The Sydney Morning Herald's website . We say early because the publication's story reveals that Playground Games, the developer of the game, plans to make the official announcement on the Forza website this Wednesday. This set of virtual machinery brings us closer to the full list, which will continue to be revealed over the coming weeks. While this part is smaller than the first one, it still features a number of notable automobiles, including the Bugatti EB110 Super Sport, GMC Syclone and Ferrari Dino 246 GT. This list also adds more vintage Aussie machines, including the very cool 1974 Holden "Sandman" HQ panel truck. Fans of the Mad Max movies may remember Max's Sandman truck from the original film. Check out the list of new cars from The Sydney Morning Herald below and take at look their article for new images and insight on what the developers' goals were for the game. 2007 Alfa Romeo 8C Competizione 1970 AMC Rebel "The Machine" 1998 Aston Martin V8 Vantage V600 2011 Audi RS 5 Coupe 2011 BMW X5 M 1981 BMW M1 1992 Bugatti EB110 Super Sport 1970 Chevrolet Corvette ZR-1 1966 Chevrolet Nova Super Sport 2008 Dodge Viper SRT10 ACR 1969 Ferrari Dino 246 GT 1968 Ferrari 365 GTB/4 2011 Ferrari FF 1978 Ford Mustang II King Cobra 1956 Ford F-100 1991 GMC Syclone 2016 Holden Special Vehicles GTS Maloo 1951 Holden 50-2106 FX Ute 1974 Holden Sandman HQ panel van 2012 Infiniti IPL G Coupe 2015 Jaguar XFR-S 1997 Lamborghini Diablo SV 2014 Lamborghini Urus 2014 Land Rover Range Rover Supercharged 2005 Lotus Elise 111S 2013 Mazda MX-5 1990 Mercedes-Benz 190E 2.5-16 Evolution II 2013 Mercedes-Benz E 63 AMG 1999 Mitsubishi Lancer Evolution VI GSR 2008 Mitsubishi Lancer Evolution X GSR 2000 Nissan Silvia Spec-R 1977 Pontiac Firebird Trans Am 2010 Renault Megane RS 250 2008 Subaru Impreza WRX STi Related Video: News Source: The Sydney Morning HeraldImage Credit: Playground Games/Microsoft Auto News Bugatti Ford GMC Holden Technology video games forza motorsport forza horizon 3