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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.

Chevy Bolt officially keeping name, says marketing boss

There might be just a little confusion at first, but the Bolt name is sticking around. After conducting two consumer studies into the name, Chevrolet isn't worried about the similarity of the monikers for the upcoming EV and existing Volt plug-in hybrid. In fact, the brand thinks the resemblance might be for the best. "The decision is made. The name won't be changed." Chevy head of marketing Tim Mahoney said to The Detroit Free Press. The research shows that the compatibility between the two names actually works quite well. With the Volt well established, people apparently already connect the Bolt to the Bowtie, which is just what a brand wants. Both studies indicated the ""same result, it did well," according to Mahoney. Just a few months ago, the future of the Bolt's name wasn't so clear. GM North America President Alan Batey said the company knew there might be confusion, and it was still mulling its options. The Bolt could be a breakthrough in the EV market with a 200-mile range and a possible price of around $30,000 after incentives. Production is set for the Orion Assembly plant in Michigan following a $200 million upgrade there, and the model could be in dealers as soon as 2017. That's just in time to take on the Tesla Model 3 with its claimed $35,000 price and similar driving distance as the Chevy. Related Video:

Chevy confirms 2016 Camaro will have wheels, brakes

Good news, everyone! Chevrolet has issued yet another round of teaser images and information about the sixth-generation Camaro, set to debut in Detroit on May 16. This time around, Chevy's teaser images confirm that the new car will not only have wheels and tires (Goodyear Eagle F1s, no less), but brakes as well. On top of that, we now know that the new Camaro will be 28-percent stiffer than the outgoing model. "The more rigid body structure allowed the engineers to more precisely calibrate the steering and suspension systems because they didn't have to compensate for chassis flex. The lighter structure also enabled the size and mass of elements such as the wheels, tires and brakes to be scaled accordingly," GM said in a press release, which you can read below. We've already learned that the new coupe will be 200 pounds lighter than its predecessor, has a bunch of unique parts, and according to GM's Mark Reuss, will outperform the Ford Mustang in every way. Now, it's only a matter of time before we see the sixth-gen Camaro, but surely not before Chevy issues even more teasers and information. Related Video: 2016 Camaro is Stronger, Lighter and More Responsive Computer aided engineering contributes to 28 percent greater structural stiffness DETROIT – The engineering team spent 9 million hours of computational time honing the driving experience of the all-new 2016 Chevrolet Camaro before the first prototype turned a wheel. The structural modeling led to the Gen 6 Camaro being 28 percent stiffer than the current model. "The modeling abilities of computer aided engineering are advancing at incredible rates," said Jim Karlavage, Camaro program engineering manager. "Today, we can accurately model opportunities to add torsional strength without adding unnecessary mass. The result is a lighter, stiffer structure that benefits every aspect of the driving experience." The more rigid body structure allowed the engineers to more precisely calibrate the steering and suspension systems because they didn't have to compensate for chassis flex. The lighter structure also enabled the size and mass of elements such as the wheels, tires and brakes to be scaled accordingly. "The structural weight savings are compounded by opportunities to reduce un-sprung weight," said Karlavage.