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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 Chevy Volt will be available across Canada, unlike most of US [UPDATE]

UPDATE: The story's been updated to add a response from General Motors of Canada. It's not enough that the Toronto Blue Jays may be the most intimidating team in Major League Baseball. Now, it appears that our neighbors to the north will also have some bragging rights in regards to General Motors' Chevrolet Volt extended-range plug-in vehicle. Specifically, most of Canada will have access to the 2016 version before most of the US will. In fact, the car will be available in Canada before people can buy it in Michigan. A trip to Windsor, Ontario, anyone? The Volt, which will boast a longer plug-in range than the current version, could go on sale in Canada as soon as November, GM Authority says. The model's second-generation version may debut in California as soon as this month, and is slated to be sold later this year in the 10 other states that abide by the so-called CARB (California Air Resources Board) rules for zero-missions vehicles. Those states include Oregon, Maine, New York and Massachusetts. But not GM's home state of Michigan. Either way, the new generation model's debut can't come soon enough for the US automaker, as Volt sales in 2015 have seriously lagged the 2014 numbers because of people waiting for the new version. "We will receive the 2016 Volt in Canada this fall, starting with our key Volt markets in Quebec, Ontario and British Columbia," wrote General Motors of Canada spokesman George George Saratlic in an e-mail to AutoblogGreen. "Note these are also the three provinces that provide provincial incentives on EV purchases. We'll then roll out Volt to the rest of the country." Last week, details were revealed about the first sales of the 2016 Volt, where marketing efforts will be concentrated among the largest plug-in buying states in the union. The other 39 states will get their shot starting next year with the 2017 model-year variant. Related Video:

400,000 Chevy, GMC pickups recalled: Side airbags can explode

DETROIT — General Motors is recalling more than 400,000 pickup trucks in the U.S. because the side airbags can explode without warning and spew parts into the cabin. The recall covers certain 2015 and 2016 Chevrolet Silverado and GMC Sierra 1500, 2500, and 3500 trucks. Documents posted Friday by U.S. safety regulators say the airbag inflator can rupture or the end cap can fly off on both sides of the trucks. Documents say three inflators ruptured in 2015 Silverados last month, one in Florida and two in Texas. All three trucks were unoccupied at the time, and GM says it has no reports of injuries. Dealers will replace both side airbag modules. The company says it has a limited number of replacement parts available. Owners will be notified starting Aug. 16 and they'll get a second letter when parts are widely available. About 9,000 of the trucks were recalled last year for the same problem. The company says a manufacturing defect allowed moisture into the inflator while it was being manufactured, causing corrosion. The inflators were made in Mexico by Joyson Safety Systems, the company that took over Takata. Back in April, Silverado and Sierra were among nearly 750,000 GM vehicles in a National Highway Traffic Safety Administration (NHTSA) investigation into non-deploying driver-side airbags. That investigation is ongoing. Takata is responsible for the largest recalls in automotive history, covering about 100 million inflators among 19 major automakers worldwide, including about 67 million inflators in the United States. Nineteen deaths in the U.S. have been attributed to Takata inflators. Only about 50 million of the 67 million recalled inflators in the U.S. have been repaired. This latest recall is a good reminder to go to NHTSA's recalls website and enter your car's VIN. Millions of recalled vehicles still pose a danger to their owners. Yours could be one of them.   Recalls Chevrolet GM GMC airbag Takata airbag recall