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5 reasons why GM is cutting jobs, closing plants in a healthy economy
Tue, Nov 27 2018DETROIT — 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 Camaro powers up, slims down
Sat, May 16 2015Don't be fooled by its familiar appearance, the 2016 Chevrolet Camaro is vastly different than its iconic predecessors. It has a new chassis, a fresh engine lineup, and is loaded with clever technologies that promise to invigorate and improve the sixth generation of Chevy's legendary sports car. It was revealed Saturday before a crowd of enthusiastic Camaro revelers on Belle Isle in Detroit. Redesigning the sports coupe was a heady task, especially as its archrivals, the Ford Mustang and Dodge Challenger, drive better and are more powerful than ever. But the new Camaro is aiming to be the best combination of handling and raw performance, with quick acceleration and competitive fuel economy. "Redesigning the Camaro is thrilling and challenging all at once, but the secret is to offer something more," Mark Reuss, General Motors executive vice president of product development, said in a statement. It all began with a weight-loss plan. The new Camaro shed more than 200 pounds compared with the outgoing car, with 133 pounds coming from a lighter body-in-white. Then engineers culled weight nearly everywhere, using aluminum for the instrumental panel frame and some suspension components to trim as much fat as possible. The slimmer body rests on new bones. The Camaro's rear-wheel-drive platform is lighter and stiffer in a bid to improve handling. It's a modified version of the underpinnings used by the Cadillac ATS, though about 70 percent of the architecture is unique to the Camaro. Chevy said structural rigidity is improved by 28 percent. As you'll see, healthy doses of Cadillac and Corvette technologies have been used to bolster the Camaro's drive character and performance. The new car is also expected to handle better thanks to a slightly smaller footprint. It is about two inches shorter in length, with most of that due to the more compact wheelbase. It's also an inch shorter in height and an inch slimmer in width. So yes, the Camaro will be leaner, but it will still be plenty mean. The Camaro SS tops the range (for now) with the Corvette's 6.2-liter V8 pushing put 455 horsepower and 455 pound-feet of torque. Known as the LT1, is has a cast aluminum block and cast aluminum cylinder heads, and it's fortified with direct injection, variable valve timing, and cylinder deactivation. About 20 percent of the engine's parts are said to be unique to the Camaro, including the exhaust manifolds.
2020 Chevy Trax and Buick Encore spied testing
Tue, Aug 14 2018We just recently saw a little crossover SUV from General Motors being tested, and we weren't positive what brand it belonged to. We narrowed it down to Chevy or GMC, but we're feeling more confident that it's a GMC now, since both the next generation Chevy Trax and Buick Encore subcompact crossover SUVs have been spied testing together. Of the two, the Chevy has the more radically different sheet metal. It ditches the somewhat frumpy, lumpy shape of the current Trax for a body inspired by the bigger Chevy Blazer. The roofline has sharp corners, and the hood is wide and flat. The front fascia, though obscured, shows the most connection to the bigger crossover. It has the same split headlight configuration, and it looks as though the grille takes up a sizable section of the fascia. View 7 Photos The Buick Encore on the other hand looks evolutionary in design. The body still has plenty of curves, and the distinctive, sharply rising window sill are all hallmarks of the current Encore design. The headlights and grille are similar, too, though the grille appears to be slightly updated to fit in with the Enclave and Regal. It's understandable that Buick might want to play it safe with the new Encore, since the model is Buick's best seller, selling about 23,000 units in the last quarter, nearly twice that of the next best performer, the Enclave. Since this is the first time we've seen these little crossovers, we expect it will still be a year or two before we get to see them fully revealed. They will probably continue to use small-displacement turbocharged four-cylinder engines with either front- or all-wheel drive. Related Video: