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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.

2018 GMC Sierra Denali can help you tow without breaking a sweat

Towing a trailer once meant that only those who possessed certain knowledge would be able to go fishing, tow a race car or pull a camper safely. For me, it took four long years of practice working a job behind the wheel of a jacked-up Ford F-250, hauling tons upon tons of mowing equipment for my local parks department, to become proficient. Just how far things have come since then became evident after a recent trip to Utah with GMC, in which we used the half-ton Sierra Denali to tow a set of Polaris side-by-sides through the state. Modern safety technology and a suite of electronic aids make towing simple enough that anyone with a driver's license and something to haul can do it. This revelation came behind the leather-wrapped and heated steering wheel of GMC's outgoing 2018 Sierra Denali. Sitting in the plush, heated and cooled captain's chair, I could barely feel the 6,000 pounds I was towing behind me. Even GMC's smallest full-size truck engine, a 5.3-liter V8 generating 355 horsepower and 383 lb-ft of torque, felt like overkill for what used to amount to a heavy load. With Utah's pristine landscape, the plush confines of the cabin and the uneventful nature of modern towing, mile after mile just streamed by at highway speeds without incident (or excitement). When we finally reached our destination a few hours later, one of GMC's representatives who had chosen to sit in the rear of the cab asked me what I thought about the drive. I pondered for a few minutes and answered with this: "Modern pickup trucks have removed nearly every skill-based variable once associated with towing. I could drive this truck and trailer confidently with just one finger." Consider the near overabundance of towing-assistance systems in the GMC Sierra Denali that I piloted through Utah. Let's start with the most basic of towing skills — something that's now been relegated to the annals of history: reversing a pickup to meet the trailer's hitch. Once upon a time, this required knowing a truck's dimensions and understanding proximity, as well as having a keen eye, a steady foot for both the gas and the brake and the patience to get it right. Now, though, pickups such as the Sierra Denali offer customers a trailer reverse camera system that helps the driver align truck to hitch with pinpoint accuracy.

Chevy Silverado, GMC Sierra 4.3-liter EcoTec3 V6 nets 18 mpg city, 24 highway

There is no doubting that fuel economy has become an important factor in the highly competitive fullsize truck market, with the Ford F-150 EcoBoost V6 and Pentastar V6-powered Ram 1500 setting quite a precedent in recent years. Now it's General Motors' turn. The General has just announced that the new base V6 used in the 2014 Chevrolet Silverado and GMC Sierra 1500 models will return an EPA-estimated 18 mpg city and 24 mpg highway in two-wheel drive trim, regardless of cab configuration.
While these figures don't go so far as to earn GM any "best-in-class" fuel economy claims (thanks to the 25-mpg Ram 1500 HFE), this new 4.3L EcoTec3 V6 does edge the F-150 and Toyota Tundra while boasting best-in-class numbers for torque, payload and towing capacity among six-cylinder rivals. This all-new engine produces 285 horsepower and 305 pound-feet of torque, and it gives the 2014 Silverado and Sierra the highest towing rating among standard V6 models with a 7,200-pound towing capacity - besting the Ram by 700 pounds, the base F-150 by 1,100 pounds and coming within 200 pounds of the V8-powered Nissan Titan. Scroll down for the official press releases from Chevrolet and GMC.