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GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.

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.

The electric Hummer gets a new logo

GM submitted three trademark applications to government offices here and in Canada, as discovered by GM Authority. Two applications went to the U.S. Patent and Trademark Office and the Canadian Intellectual Property Office on February 4 this year, seeking to reserve the new Hummer logo, at the top in the image above. Note, the two logos aren't to scale; they're about the same size all things being equal, but we shrunk the old mark. GM sent a second application to the USPTO on February 7 requesting the brand name "Hummer" for application to "motor land vehicles, namely, automobiles, trucks and sport utility vehicles; bicycles." True, we've seen the new Hummer script stretched across the front of the coming electric pickup in a teaser clip, but the paperwork continues the process of getting the entire continent ready for the alternate universe resurrection of one of America's most notorious brands.     In 2010, gas prices were in orbit, GM committed to closing the Hummer brand, vandals were setting fire to the scattered Hummers left on dealer lots, the Chevrolet Corvette ZR1 made 638 horsepower, the eco-minded revered the Toyota Prius and the Tesla Model S was still two years away. In that year, it would have been hard to say something more bonkers than, "Hummer's coming back in ten years as an electric pickup, its top trim making 1,000 horsepower and 11,500 pound-feet of torque." But here we are. The new logo's squareness connects it to the resolute bluntness of the old mark, yet the thinner font and chopped corners both modernize the old logo and lessen its truculence. The brand appears headed the same way, with lurid specs and square-jawed looks just like old times, but having in LeBron James a more modern take on the hardcore male vibe than it once got from (unpaid) association with guys like Arnold Schwarzenegger. To be fair, old Hummer commercials always featured women in the driver's seat, or men and young boys dreaming of big adventures, or Regis Philbin chatting up models, but the marketing department couldn't — or didn't want to — outrun the lineup's reputation on the street. We'll see how the electric version and its “incredible on- and off-road capability" fare. According to the teaser site, the new Hummer's debut is still on track for May 20. If the brand manages to recreate the old H3T pickup but with an electric powertrain, it's got one buyer right here lined up already. Related Video: