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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.

New recall issued in 2019 Chevy Silverado and GMC Sierra brake software saga

General Motors (GM) has issued a new recall for select 2019 Chevy Silverado 1500 and GMC Sierra 1500 pickup trucks that aims to resolve a faulty fix for a previous recall. According to National Highway Traffic Safety Administration (NHTSA) campaign No. 20V055000, a software update for the Electronic Brake Control Module (EBCM) could cause the electronic brake assist to be disabled.  The NHTSA first launched a recall for 463,995 Silverados, Sierras, and Cadillac CT6es on December 12, 2019 due to a software issue in the electronic brake control module (EBCM) that could disable the electronic stability control (ESC) and anti-lock braking system (ABS). As a response and resolution to that recall, GM began to reprogram the software in affected vehicles. GM later learned that the fix was creating a different problem. The installed software had its own error that was disabling the electronic brake assist. If customers see “Service Brake Assist” or “Service ECS" diagnostic warnings, they should park the vehicle and have it towed to a dealership, GM warns. While GM was going through the process of testing, pinpointing the issue, determining action and working with the NHTSA, safety experts have criticized Chevrolet and GMC for not reacting promptly and appropriately.  According to the recall, 148,055 are now affected, all of which do not meet the standards of Federal Motor Vehicle Safety Standard (FMVSS) number 126, "Electronic Stability Control" and 135, "Light Vehicle Brake Systems." To fix the braking issue, GM will once again reprogram the software. GM began notifying owners of the recall on February 10, 2020. Related Video:

GM opens official investigation into C8 Corvette transmission leaks

In March 2020, a month after Chevrolet began customer deliveries of the 2020 C8 Corvette, a GM dealer technician created a Reddit thread about a leaking gearbox in a Corvette with 32 miles. That car hadn't even been sold yet. Since then, as a search of "C8 Corvette transmission leak" shows, it's been tales of woe for some owners. Something in the Tremec TR-9080 transaxle in the back of the mid-engined Corvette doesn't work as it should, the fault able to cause codes that the transmission needs service, or that the driver needs to shift to park. In some cases, the battery would die because of follow-on issues after the initial transmission code, that code preventing the car from powering down. As Autoevolution reports, GM filed paperwork with the National Highway Traffic Safety Administration in August to look into what's going on. Between forum threads and GM's investigation document, there are several issues mentioned. The most common appears to be the dual-clutch transmission leaking fluid due to gasket failures like the one suffered by one owner at 858 miles, and another for an owner currently enduring a second leaking transmission. The Midengined Corvette Forum reported that Chevy engineers redesigned the TR-9080 pan, fitting Corvettes with the new unit at some point in the 2021 model year. The original pan was stamped steel unit affixed to the engine with two studs and 13 bolts, plus "reinforcement plates." The updated pan is said to be a cast aluminum unit affixed with two studs and 17 bolts, omits the reinforcement plates, and gets a new machined new groove around its edge to seat the gasket seal. The GM paperwork now at the NHTSA mentions a P1789 code, and says one reason for it could be "debris on the park position sensor magnet causing an incorrect position reading to the TCM." This might be caused by another issue mentioned in forums, which is clogged transmission filters. GM gives instructions for returning transmission filters to the company, and a poster on one forum said the Corvette tech at the dealer where he bought his Corvette told him the automaker "requires every used transmission filter to be returned to GM."  Whatever's going on, the problems haven't stopped, and they go beyond the P1789 code. Over the weekend, a 2022 Corvette owner posted on Corvette Forums that he got a check engine light on his car after just 850 miles.