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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.

GM might share the Chevy Volt's powertrain tech with rivals

Car shoppers might eventually find the award-winning powertrain from the second-generation Chevrolet Volt under the hood of another automaker's vehicle – at least if General Motors global powertrain chief Dan Nicholson gets his way. According to Automotive News, Nicholson would be open to partnerships with other companies to share the range-extended setup. "We want to be the partner of choice in propulsion system development in this complex and turbulent era we are approaching," he told the trade publication. For an automaker that wants an electrified solution, the Volt's system would be an easy choice. It combines a 1.5-liter four-cylinder with two electric motors and an 18.4-kWh lithium-ion battery. The EPA estimates the setup is good for 106 MPGe combined and 53 miles of EV range in the Volt. Wards selected the powertrain for its 10 Best Engines list for 2016, and the Chevy won the Green Car of the Year Award. According to Automotive News, a partnership could have serious financial implications for GM and its collaborator. Rival automakers could get a competitive powertrain without the huge expense of research and development. Meanwhile, The General would benefit from larger economies of scale to drive down prices. Don't look for the Volt's powertrain to arrive in other vehicles too soon, though. GM spokesperson Kevin Kelley told Autoblog that he was "not aware of anything going on" in regards to negotiations with other automakers. In the meantime, we'll keep our eyes open for companies borrowing the Bowtie's advanced tech. Related Video: Related Gallery 2016 Chevrolet Volt: First Drive View 24 Photos News Source: Automotive News - sub. req.Image Credit: Copyright 2016 Sebastian Blanco / AOL Green Chevrolet GM Technology Hybrid Videos Sedan

Watch the National Corvette Museum sinkhole being filled in by R/C cars

Okay, so not exactly cars, but Bobcats - but still quite cool. You might remember that the National Corvette Museum had that little divot that needed to be filled in. Turns out the construction firm of Scott, Murphy & Daniel doing the work is using two remote-controlled Bobcats to fill the sinkhole with "manufactured sand," which in this case is crushed limestone. It appears that the Bobcat company has offered remote operation since at least 2007 via a wireless transmitter that works up to 1,500 feet away. So yes, that means two SMD employees stand on the edge of the pit and flick joystick levers for hours at a time, one in charge of a Bobcat with a roller-compactor attachment, the other in charge of a Bobcat with a bucket. And that, to us, is a pretty good way to earn the daily bread. Check out the video above for the latest sinkhole update. News Source: National Corvette Museum via YouTube Auto News Weird Car News Chevrolet GM Videos rc car remote control National Corvette Museum bobcat ncm