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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.

Pics Aplenty: Meet the 2014 Chevrolet Silverado and GMC Sierra [w/poll]

Today was a pretty big day for General Motors, debuting the all-new Chevrolet Silverado and GMC Sierra light-duty pickup trucks ahead of their official showcase at the 2013 Detroit Auto Show. And now that the dust has settled at GM's big reveal event, we've had a chance to snap dozens of photos of the new pickup pair from every angle.
We already told you the important bits earlier today (click here in case you missed it), but let's recap. Under the hood are three new engines - a 4.3-liter V6, 5.3-liter V8 and 6.2-liter V8 (you know, a version of the small-block that'll also be found under the hood of the C7 Corvette), all mated to six-speed automatic transmissions. The 2014 model year marks the return of the Z71 off-road package with Rancho shocks, front tow hooks and beefier underbody protection. Inside, there's a host of new technology and a greater focus on better quality and refinement.
Some of the nitty-gritty specifics (like engine output numbers and fuel economy) have yet to be revealed, and since we haven't driven the finished products yet, it's hard to say how these trucks will fare against rivals like the Ram 1500 and Ford F-150. For now, we can only judge these two books by their covers, and while we do like the designs of the new trucks, we Autoblog staffers are torn on exactly which one looks best.

Use this PowerPoint when convincing your spouse to let you buy a Corvette

When you are not the one in charge of the purse strings, creativity is a must when trying to get the string-holder to bankroll that next shiny object you just can't live without.
When I was a kid, I decided that life wasn't worth living if it weren't in pursuit of owning a GMC Typhoon. My 12-year-old self crafted a fiscal strategy that, when combined with my offer of a 49-percent share of ownership in the car in return for my parents' contribution of 80-percent of the purchase price, would see me behind the wheel of a Typhoon by the time I hit college. They walked away from the negotiating table and, the economic climate of the 8th grade being what it was at the time, another partner wasn't found before the Typhoon was discontinued.
Roy El-Rayes, however, has succeeded where 12-year-old me failed, and he did it by using the sort of professionalism that only a PowerPoint presentation can provide, along with some humor and bold-faced flattery.