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GM to sink over $900M into 4 plants, mostly for a new V8

FLINT, Mich. — General Motors says it will spend more than $900 million to update four factories, with the bulk going to an engine plant in Flint, Michigan, to build the next-generation V8 for big pickup trucks and SUVs. Factories in Rochester, New York; Defiance, Ohio; and Bay City, Michigan, also will see investments, some to make V8 engine components as well as parts for future electric vehicles, the company said Friday. The investments won't create any new jobs, but they will preserve about 2,400 hourly and salaried positions positions at the four sites, the company said. The investments “provide job security at these plants for years to come,” Gerald Johnson, GM's manufacturing chief, said in a statement. Much of the money, $579 million, will go to Flint Engine Operations for equipment to build the sixth-generation small-block V8 that will go into the next round of big pickup trucks and SUVs. The plant now employs about 700 people who also will keep making their current product, a diesel engine used in light trucks. GM, like other automakers, is facing stricter government fuel economy standards and pollution limits starting in the 2024 model year. New vehicles sold in the U.S. will have to average at least 40 miles per gallon of gasoline in 2026, up from about 28 mpg, under new Biden administration rules that undo a rollback of standards enacted under former President Donald Trump. That means the new V8 will have to get better mileage and pollute less than the current versions. Although GM wouldn't release details on the new engine, Johnson said during a news conference at the Flint plant that it would be more efficient than the current version. GM has a goal of selling only electric passenger vehicles by 2035, but Johnson said that's a dozen years out, a period when many customers will still want gas engines. “We know that has a horizon,” he said. “Between here and there, there are a lot of internal combustion customers that we don't want to lose,” he said. In addition to Flint, GM's engine components plant in Bay City, Michigan, will get $216 million to build camshafts and connecting rods, and to machine engine blocks and heads for the new V8 being built in Flint. The plant now employs about 425. The Defiance, Ohio, foundry will get $55 million to build a variety of block castings for the new V8. Included is $8 million for castings to support future electric vehicles, the company said. The plant has about 530 employees.

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.

Chevy Silverado Realtree Edition calls to your inner woodsman

Hunters and woodsmen, this could be your next pickup truck. It's a special-edition Silverado, done up with the camo specialists at Realtree. This truck packs all the off-road equipment you could want, and boasts a special appearance package to set it apart from ordinary citified pickups. The Realtree edition is based on the 2016 Chevy Silverado 1500 in LTZ trim with a crew cab and the Z71 package. It's all blacked out, from the bodywork and Bowtie emblems to the side steps and 20-inch wheels with their all-terrain tires. It features Realtree logos and camouflage graphics inside and out, and since it comes with the Z71 pack, it also features monotube shocks, a locking rear diff, an underbody shield, and hill-decent control. This special edition results from a decade-long partnership between Chevrolet and Realtree, but stops short of a full camo treatment. For that, you may want to scope out the Special Ops edition recently confirmed for production after its debut at SEMA (alongside another Realtree show truck). Outdoorsy types, however, may very well be more attracted to this Realtree special, which could prove just the foil GM needs to the Ram Mossy Oak Edition. It launches in the spring, just in time for hunting season – though you'll still need to fit your own gun rack. Related Video: CHEVROLET INTRODUCES SILVERADO REALTREE® EDITION HERE'S THE STORY Chevrolet today introduced the 2016 Silverado Realtree® Edition – an outdoors-inspired special edition that leverages the strength, versatility and personalization possibilities of the Silverado and distinguishes it with camo graphics from Realtree, the world's leading camouflage brand. It's the latest and strongest example of a decade-long partnership between Chevrolet and Realtree. PRODUCT DETAILS The new Realtree® Edition package is offered on Silverado 1500 LTZ Z71 crew cab models and includes exterior camo graphics and the Realtree logo embroidered on the front-seat headrests. Additionally, interior attributes feature the Realtree camo logo and graphics. The Silverado Realtree® edition also includes special blackout trim, black bow ties, off-road assist steps and black 20" wheels with all-terrain tires. Also included is the legendary Z71 off-road package featuring Rancho monotube shocks, Hill Decent Control, an underbody shield and the G80 auto locking rear differential.