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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 Chevrolet Malibu First Drive [w/video]

You have to appreciate honesty in this business. When a car company admits its offering in a segment isn't up to the task, it catches you by surprise. The surprisingly open Chevy reps stopped short of saying that making the last Malibu smaller was a mistake, but given that the righting of the ship included a lengthening of this new model, it was certainly implied. The eighth-generation Malibu lasted only three years, with a major update coming just one year in to try and fix some of the bigger concerns. The goal for the 2016 Malibu wasn't to make a competent product better, it was to make an okay one good again. That started with a stretch. The Malibu is long again, a big car that meets America's warped idea of a midsized car. Because of this, the Malibu's dimensions sidle up to the Impala's. In fact, it's within a fraction of an inch of the Impala's wheelbase measurement, and sits right between the last Malibu and the Impala in terms of EPA passenger volume. The back seat gets the most of the payoff, bringing it back into competition with other midsized counterparts. The Malibu is now one of the longest in the segment, but also among, if not the, lightest. The 2016 model is claimed to be about 300 pounds lighter than its dimensionally challenged predecessor. While most new models tend to choose between lighter or larger these days, Chevy managed not-insignificant improvements to both. Styling doo-dads no longer separate the trim levels, it's the features inside that fuel the upsell. Some of that weight came out of the front end. The aluminum hood is lighter than before, and we'd wager that's because it stops very short of the leading edge of the car. Instead, the nose is enshrouded in a big plastic fascia, which has to be an advantage at the scales but creates a somewhat unfinished look. That's amplified by the fact that everything ahead of the hood is a bit busy, and actually surprisingly aggressive, in contrast to the rest of the design. The new Cruze, with its cowl-to-grille hood, wears a more cohesive new-Chevy front end. The styling adopts the, dare we say it, coupe-like look of many (most?) new family sedans. The profile is attractive enough but almost generic now since the Chrysler 200, Ford Fusion, and others have already moved in this direction. The rear-end styling is inoffensive, almost original Mercedes CLS meets current Impala.

Chevrolet Suburban Luggage Test: How much fits behind the third row?

From the very beginning of doing these luggage tests, I specifically had no intention of doing one for the Chevy Suburban or any extended-length full-size SUVs. Quite simply, there was no question that my six suitcases were going to fit behind the third row. And not only that, I was pretty confident there'd be a ton of space left over, much as there is in mid- and full-size two-row SUVs.  And yet, you know what vehicle I've received more requests for cargo-related information about over the years? That's right, the Chevrolet Suburban. Sure, it's not exactly BTS fan mail volumes, but it's more than anything else. Apparently, people want to know how much fits in the back of a Suburban (or GMC Yukon XL ... or Cadillac Escalade ESV). So, when a Suburban popped up in the press fleet I decided to finally give the people what they want.  As a reminder, this is the amount of cargo space behind the THIRD row of a Suburban. Chevrolet says this is 41.5 cubic feet, and it sure looks like it.  For the record, the most stuff I've ever put into the back of a three-row vehicle is a Honda Odyssey, which has 32.8 cubic feet of space. I never did another minivan after that, for reasons effectively described above. And no one has asked for it. Now, because I'm greedy, I lifted up the floor to see if there's any underfloor space. Wow, there is! Theoretically, it could lower the floor a bit and allow for even more stuff, but the floor's hinges don't allow it. Unlike those in a BMW that can be propped into an upright position, these'll just drop the floor back down again. That's OK, I won't use this then. Let's get to the bags. As with every Luggage Test, I use two midsize roller suitcases that would need to be checked in at the airport (26 inches long, 16 wide, 11 deep), two black roll-aboard suitcases that just barely fit in the overhead (24L x 15W x 10D), and one smaller green roll-aboard that fits easily (23L x 15W x 10D). I also include my wife's fancy overnight bag just to spruce things up a bit (21L x 12W x 12D). So yeah, it all fits. No surprise there. In fact, there's even more room leftover than I anticipated.  Let's go to the extra (and imaginary) items, then! First up, the trusty 38-quart Coleman cooler. This added to my bags, plus maybe a duffle bag, is what big "compact" SUVs like the Kia Sportage and Toyota RAV4 can manage.