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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.

Weekly Recap: Auto execs face life in prison for recall delays under proposed legislation

The stiff punishments are part of broader transportation legislation, but clearly McCaskill has automakers in her sights.
Missouri Senator Claire McCaskill threw down the gauntlet this week, proposing a bill that could send auto executives to prison for life if they were found to have delayed a recall. She also wants to eliminate the limit for fines for auto safety violations, which are currently capped at $35 million.

2022 GMC Yukon Review | AT4 and Denali make the strongest case

The total redesign of GM’s full-size SUVs for the last model year transformed every brandÂ’s version for the better, as the switch to an independent rear suspension resulted in the exact improvements weÂ’ve been wanting in terms of ride, handling, interior space and cargo capacity. Now in their second year of this generation, the 2022 GMC Yukon and Yukon XL continue to take advantage of these fantastic changes. Just as always, the GMC versions borrow heavily from their sister SUVs, the Chevrolet Tahoe and Suburban. The main differences lie in the exterior styling, and to a lesser extent, the interior. ThereÂ’s also the matter of price, as the Yukon is positioned in a slightly more premium space than the Chevy version of this truck. Most notable in this regard is the popular, top-of-the-line Denali, which has for the first time has an interior design that's different than other Yukons and every Tahoe. Despite this premium positioning, the Yukon is not prohibitively expensive, and it reasonably competes with other full-size SUVs like the Ford Expedition and Jeep Wagoneer. Which of the GM SUVs you choose is based almost entirely on looks and price, as the available feature set, engine lineup — we suggest the money-saving diesel — and drive options are nearly the same between them. ItÂ’s hard to go wrong, though, because just like last year, GMÂ’s full-size SUVs are our current leaders in the clubhouse as the ones to get. Interior & Technology   |   Passenger & Cargo Space   |   Performance & Fuel Economy What it's like to drive   |   Pricing & Features   |   Crash Ratings & Safety Features What's new for 2022? The most notable change for 2022 is a totally new infotainment system powered by Android Automotive. It brings new software and Google Maps as a native navigation system. Another tech enhancement is GMC swapping in its 12-inch digital instrument cluster (and making it standard) for the analog gauge cluster from last year. Lastly, the AT4 trim is now available with 6.2-liter V8 option. Note that GMC increased pricing for the Yukon mid-way through the 2022 model year. You may see differing prices online as a result, but those on this page are accurate as of May 31, 2022.  What are the Yukon interior and in-car technology like? The YukonÂ’s interior is an odd one, as there are two entirely different interior designs available depending on which trim you choose.