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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’s move to Woodward is the right one — for the company and for Detroit

Back in 2018, Chevy invited me to attend the Detroit Auto Show on the company dime to get an early preview of the then-newly redesigned Silverado. The trip involved a stay at the Renaissance Center — just a quick People Mover ride from the show. IÂ’d been visiting Detroit in January for nearly a decade, and not once had I set foot inside General MotorsÂ’ glass-sided headquarters. I was intrigued, to say the least. Thinking back on my time in the buildings that GM will leave behind when it departs for the new Hudson's site on Woodward Avenue, two things struck me. For one, its hotel rooms are cold in January. Sure, itÂ’s glass towers designed in the 1960s and '70s; I calibrated my expectations accordingly. But when I could only barely see out of the place for all the ice forming on the inside of the glass, it drove home just how flawed this iconic structure is.  My second and more pertinent observation was that the RenCen doesnÂ’t really feel like itÂ’s in a city at all, much less one as populous as Detroit. The complex is effectively severed from its surroundings by swirling ribbons of both river and asphalt. To the west sits the Windsor tunnel entrance; to the east, parking lots for nearly as far as the eye can see. To its north is the massive Jefferson Avenue and to its south, the Detroit River. You get the sense that if Henry Ford II and his team of investors had gotten their way, the whole thing would have been built offshore with the swirling channel doubling as a moat. This isnÂ’t a building the draws the city in; itÂ’s one designed to keep it out. Frost on the inside of the RenCen hotel glass. Contrasted with the new Hudson's project GM intends to move into, a mixed-use anchor with residential, office, retail and entertainment offerings smack-dab in Detroit's most vibrant district, the RenCen is a symbol of an era when each office in DetroitÂ’s downtown was an island in a rising sea of dilapidation. Back then, those who fortified against the rapid erosion of DetroitÂ’s urban bedrock stood the best chance of surviving. This was the era that brought us ugly skyways and eventually the People Mover — anything to help suburban commuters keep their metaphorical feet dry. The RenCen offered — and still offers — virtually any necessity and plenty of nice-to-haves, all accessible without ever venturing outside, especially in the winter, but those enticements are geared to those who trek in from suburbia to toil in its hallways.

The Corvette Museum sinkhole has been filled

After swallowing eight of the most prized pieces of the collection from the National Corvette Museum, the massive sinkhole from a year ago is rapidly becoming nothing but a bad memory. Based on the museum's weekly construction update, you can barely see the remnants of the 25-foot deep hole once in the floor. The Corvette Museum's Skydome was not always going to look like this. The original hope was to keep the sinkhole there as a tourist attraction. That plan eventually fell through, though, and instead it was decided five of the less-damaged Corvettes would remain unrestored. Progress has been moving fast to get the repairs done. Even a month ago, the hole was still very visible, and the construction company used remote-controlled Bobcat loaders to fill it in. Now, the museum has launched a contest to guess how many tons of stone it took to fill in the massive crater. The winner gets a print of the 2009 Corvette ZR1 Blue Devil being lifted out. Related Gallery National Corvette Museum Car Recovery View 25 Photos News Source: Corvettemuseum via YouTubeImage Credit: National Corvette Museum Weird Car News Chevrolet GM Videos National Corvette Museum