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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.

Fiat Chrysler exec talks up the future of fuel cells

When it comes to a belief in the viability of electric vehicles, you can put automotive folks like Nissan's Carlos Ghosn and Tesla Motors' Elon Musk on one side of the proverbial wall and Fiat Chrysler Chief Technology Officer Harald Wester on the other. Because while the two former executives are staking much of their companies' respective future on plug-in electric drivetrain technology, Wester sees no such future in it at all, according to an interview in Motor Trend. Oh, sure, the Fiat Chrysler technology chief does give the idea of an electrified powertrain some quarter, saying he sees standard hybrids as a solution for the "intermediate" future in addressing both higher gas prices and need to meet progressively more stringent European greenhouse gas-emissions standards. But Wester, who also oversees Fiat Chrysler's Alfa Romeo and Maserati brands, ultimately views hydrogen fuel-cell technology as the way to go for advanced powertrains and minimal emissions. As for battery-electric vehicles? Wester pretty much shoots them, citing everything from a typical EV battery's weight to the challenge of finding electric recharging stations to the fact that much of the electricity needed for those cars is produced via CO2-emitting sources. He forgot to say anything about the CO2 required to bring gasoline or hydrogen to market. Wester's "bah humbug" is actually pretty consistent with the company's party line. Last year, Fiat Chrysler head honcho Sergio Marchionne, in an interview, famously told the general public not to buy the Fiat 500e electric vehicle. That's because he estimated that the company takes a $14,000 loss on each unit sold of Fiat Chrysler's only production EV. News Source: Motor Trend via Green Car Reports Green Chrysler Fiat Electric Hydrogen Cars harald wester

Stellantis and Foxconn's new joint venture will focus on connectivity

MILAN — Carmaker Stellantis and TaiwanÂ’s Foxconn announced plans to develop a jointly operated automotive supplier focusing on technology to make vehicles more connected, including artificial intelligence-based applications and 5G communications. Stellantis CEO Carlos Tavares said the services that will be developed through the tie-up “will mark the next great evolution of our industry,” alongside fully electrified and hybrid powertrains. The deal brings together Stellantis, the worldÂ’s 4th-largest automaker formed this year by the merger of Fiat Chrysler Automobiles and PSA Peugeot, and Foxconn, a major supplier of iPhones. The companies said the venture would focus on such services as infotainment, the integration of telecommunications and computer systems, artificial intelligence-based applications, 5G communications, e-commerce channels and smart cockpit integration. The companies announced a non-binding memorandum of understanding to form a 50-50 joint venture called Mobile Drive, which will be based in the Netherlands and function as an automotive supplier also to other carmakers. The new venture will combine advanced consumer electronics, Human-Machine Interfaces (HMI) to create new services “that will exceed customer expectations,” the companies said in a release. “Customers today and, in the future, demand and expect ever-increasing software-driven and creative solutions to connect the drivers and passengers with the vehicle inside and out,Â’Â’ Foxconn Chairman Young Liu. Alfa Romeo Chrysler Dodge Ferrari Fiat Jeep RAM Citroen Opel Peugeot 5g Connectivity Stellantis Foxconn