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GM laying off 500 workers to slow Chevy Sonic production

Due to slow sales of the Chevrolet Sonic and Buick Verano, General Motors is cutting a shift at the Orion Township plant that builds the pair. The move lays off about 500 workers, but most of them are expected to get offers to transfer to other factories, Automotive News reports. The move came just a day after GM announced adding 1,200 employees to the Detroit-Hamtramck plant. GM has been trying all year at the Orion Township factory to align production of the Sonic and Verano with their demand. The automaker first attempted idling the plant several times and eventually resorted to laying off about 100 workers. It also reduced the production rate there. With the huge rise in popularity of crossovers, demand for the plant's small cars is on the downturn. According to Automotive News, there's currently a 116-day supply of Sonics and 100 days of Veranos to sell. Delivers tell a similar tale because the Chevy is off 35.2 percent from January to September, and the Buick does little better with a 27.2 percent drop from the same period last year. While the situation at Orion Township might look rough now, big things are on the horizon. Soon, the new Chevy Bolt electric vehicle will be built there when it hits the market around 2017. Plus, the plant will also get a $245-million upgrade and 300 new jobs for another, unannounced vehicle.

2016 Chevy Volt rated at 106 MPGe, 53 miles of pure EV range

Following a string of rumors, Chevrolet and the Environmental Protection Agency have released official fuel economy numbers for the second-generation Volt. As was reported earlier today, the new and improved hybrid will cover 53 miles on pure electric power. As Chevy tells it, first-gen Volt owners cover about 80 percent of their mileage on EV power alone, so the 40-percent increase from the second-gen should lead to an even bigger reduction in gas-powered Volt mileage. Chevy expects some 90 percent of mileage to come from a plug with its new 2016 model. This newfound EV range comes thanks to the 2016 Volt's 18.4-kilowatt hour lithium-ion battery. Rated at 106 MPGe by the feds – exactly what was promised by a June leak – the 2016 Volt improves nicely on the current model's 17.1-kWh, 98-MPGe battery back. There's also a marked improvement when relying on the gas-powered on-board generator. The 1.5-liter, four-cylinder engine will happily run on regular fuel and return a still-impressive 42 miles per gallon combined rating once the battery's state of charge is depleted. Expect the freeway to cruise to be even better, although Chevy isn't ready to say by how much. Fully charged and with a full tank, drivers should expect to cover 420 miles, a 40-mile improvement over the current model. Scroll down for the official press release from Chevrolet Related Video: The Results Are In: More Range for the 2016 Volt EPA-estimated pure electric range is 53 miles DETROIT – The 2016 Volt is engineered to offer customers more of what they want: range, range and more range. The Volt's all-new second-generation Voltec extended range electric propulsion system delivers 53 miles of pure EV range, based on EPA testing. That is nearly a 40-percent improvement over the first generation Volt. Chevrolet expects many next-generation Volt owners will use power solely from their battery for more than 90 percent of trips. Today, Volt owners use battery power on 80 percent of their trips. This means that the average Volt owner may expect to travel well over 1,000 miles between gas fill ups, if they charge regularly. For the first 53 miles, the Volt can drive gas and tailpipe-emissions free using a full charge of electricity stored in its new 18.4-kWh lithium-ion battery, which is rated at a combined 106 MPGe, or gasoline equivalent. When the Volt's battery runs low, a gas-powered generator seamlessly operates to extend the driving range for a total of 420 miles on a full tank.

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.