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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.

Electric Hummer is official, and Tesla's got momentum | Autoblog Podcast #612

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor Alex Kierstein and Senior Editor, Green, John Beltz Snyder. They start things off with a discussion of the week's news: GMC is launching an electric Hummer truck with a Super Bowl ad, and Tesla was profitable in Q4, sending its stock soaring. Then they talk about what they've been driving, including a super badass Mercedes-Benz Sprinter, the Kia Telluride and their long-term Volvo S60 PHEV. There's no "Spend My Money" segment this week, so send in your questions for future podcast episodes. Autoblog Podcast #612 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Hummer returns as electric GMC truck Further reading: Grappling with the dark side of EVs Tesla profitable for second straight quarter Cars we're driving: Mercedes-Benz Sprinter 3500XD Kia Telluride (whose safety tech won Autoblog's 2020 Technology of the Year Award) Long-term Volvo S60 T8 update Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

GMC SIerra Denali is ready to live the high life

Between the information for the 2014 Chevrolet Silverado High Country and the accidently leaked picture on GMC's consumer site, it didn't take much imagination to envision what the 2014 GMC Sierra Denali would be like. But here it is. Going on sale this fall, the 2014 Sierra Denali will continue to be the most luxurious pickup truck in the General Motors portfolio, while getting more power and technology than ever before.
Like previous models, the 2014 Sierra Denali stands out from lower Sierra models with a big cheese-grater chrome grille, 20-inch chrome wheels and body-color bumpers. Inside, the Denali gets plenty of leather with contrasting stitching, but this is where GMC really steps up from the Silverado High Country with real aluminum trim and a new customizable eight-inch driver display in the gauge cluster. Standard features will include heated and cooled front bucket seats, the Intellilink infotainment system with Bose audio, while the options list offers a Driver Alert Package (with forward collision alert and lane departure warning), a rear-seat entertainment system and a Z71 Off-Road Package.
As for power, the standard engine will be the 5.3-liter EcoTec3 V8 with its 355 horsepower, and the optional engine will be the new 6.2-liter V8. Although official power figures for the bigger engine aren't in yet, GM is finally putting some estimates on paper expecting around 420 horsepower and 450 pound-feet of torque to go with a 12,000-pound towing capacity. The new Sierra Denali will be available in either two- or four-wheel drive. Scroll down for more details listed in the official press release.