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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.

Dodge Challenger outsold Mustang, Camaro in third quarter of 2019

The Dodge Challenger is nearly old enough to start driver's ed in some states, and it doesn't have a firm grasp on the increasingly crucial concept of downsizing, yet it beat the odds to become the most popular American two-door model during the third quarter of 2019. Its ballooning sales figures suggest buyers don't always want the latest, most advanced car they can get their hands on. Dodge sold 18,031 examples of the Challenger during the third quarter of 2019, a shocking 21% increase over the same period in 2018. It's a true muscle car, normally sardined in the same can as the Chevrolet Camaro and the Ford Mustang, a pair of smaller, nimbler two-doors that are much closer to the historic definition of a pony car. Semantics aside, the Mustang finished on the second spot of the sales podium with 16,823 sales, a 12.3% drop compared to the third quarter of 2018, and the Camaro took third with 12,275 sales, a 15% dip that alarmingly comes in the wake of two redesigns. More specific sales figures aren't available. We don't know what percentage of the sales mix V8s represent, or whether buyers prefer manual or automatic transmissions. The scoreboard looks different when we examine 2019's year-to-date figures. The Mustang takes first place with 55,365 sales, followed by the Challenger at 46,699, and the Camaro at 36,791. While the Challenger's recent ascent is encouraging, it can't mask the fact that two-door models no longer enjoy a favorable tailwind, and the entire segment — not just the American entries — is declining. The aforementioned year-to-date figures are down by 10.1, 11, and 7.6 percent, respectively. The third-quarter statistics revealed a handful of other surprises unrelated to the world of performance. Dodge notably sold three examples of the Dart, a sedan it hasn't built since 2016. That's a 93% drop compared to the 45 units that found a home during the third quarter of 2018.

GM Recalling 370,000 Trucks For Fire Risk

DETROIT (AP) - General Motors is recalling 370,000 Chevrolet Silverado and GMC Sierra pickups from the 2014 model year to fix software that could cause the exhaust components to overheat and start a fire. The recall includes 303,000 trucks in the U.S. and 67,000 in Canada and Mexico. All of the trucks involved have 4.3-liter or 5.3-liter engines. GM said eight fires have been reported, but no injuries. One garage was damaged, the company said. All of the incidents occurred in cold weather. The company is asking customers not to leave their trucks idling unattended. GM dealers will reprogram the software for free. The company will inform owners starting Jan. 16. The major recall announcement, which came on Saturday, marred the Silverado's winning of the 2014 North American Truck of the Year Award at the Detroit Auto Show on Monday. Related Gallery Our Favorite Cars For Winter View 11 Photos Recalls Chevrolet sierra