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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.

Chevy Colorado Z71 Trail Boss 3.0 concept heads to SEMA

Chevrolet is presenting a new take on the Colorado pickup at the SEMA show this year. The show truck picks up where the Colorado Z71 Trail Boss Edition leaves off, with numerous accessories from the parts catalog as well as several custom additions. The SEMA truck is based on a Crew Cab model with four-wheel drive, painted red with rally stripes. Among the features added from the catalog are a sport bar with LED auxiliary lighting, mounted to the cargo bed. It's also stylistically augmented with fender blares, Bowtie emblems, and rocker steps all done up in black to match the 17-inch alloys shod with Goodyear DuraTrac all-terrain tires. Chevy has also equipped this truck with an automatic locking rear diff, a transfer case shield, recovery hooks at the front, a spray-in bedliner, projector-beam headlamps, fog lamps, and all-weather floor mats. Chevy has also fitted this pickup with color-keyed door handles and mirror caps, upgraded exhaust and air intake, rubber floor liners, brushed metal interior trim, and an illuminated grille badge. Public reception will determine how many of these and other additional features will be considered for production. Colorado Z71 Trail Boss 3.0 Concept Shows Off-Road Style New styling accessories, performance parts enhance trail-ready capability LAS VEGAS – The Colorado Z71 Trail Boss Edition is designed for those who want to blaze their own trails and Chevrolet's new Z71 Trail Boss 3.0 concept vehicle enhances its off-road style with new Chevrolet accessories and performance parts. Chevrolet introduced the new concept vehicle at the SEMA Show today, where it joined concept versions of the Silverado 1500 and HD models to demonstrate the depth and breadth of the brand's three-truck lineup. "The Colorado Z71 Trail Boss Edition is made for tackling the tough terrain required to get away from it all and this concept version does it with rugged style," said Sandor Piszar, director of Chevrolet Truck Marketing. "And whether it's the Colorado, Silverado 1500 or Silverado HD, there's a Chevy truck to take you where you want to go, regardless of whether there's a road leading there." The production 2016 Colorado Z71 Trail Boss is offered in extended and crew cab configurations, with a choice of a long or short cargo bed and available 4WD – as well as the all-new 2.8L Duramax turbo-diesel, which takes the maximum trailering rating up to 7,700 pounds.

Costco Auto Program adds the Chevy Silverado and GMC Sierra through July

Costco members lean to the Bowtie when it comes to pickups. The big box store wrote that the Chevrolet Silverado "is currently the most requested Chevrolet and pickup truck through Costco Auto Program and has been for the past 11 years. In the 14 years Costco has partnered with Chevrolet for member-only incentives, the Silverado (when included), has been the top selling vehicle every time." Members can rejoice, because just for the months of June and July, the Costco Auto Program has added the Silverado and the GMC Sierra to its Costco Auto Savings Event. Until July 31, 2024, card-carrying shoppers can get an additional $1,000 discount on top of any manufacturer incentives they qualify for when leasing or purchasing new examples of either. The Auto Savings event includes other vehicles as well, the $1,000 incentive applicable to certain other models from Chevy and GMC, as as well Volvo and Cadillac. Tire kickers considering the Polestar 2 can get $2,000 off.  You can check out our write-up on the Costco Auto Program for all the details and the frequently asked questions. The summary is that the store works with "selected" dealers to refer customers to, about 3,000 storefronts across most automotive brands. The program comes with no-haggle pricing for any straight-up purchase. Costco offers customers a research tool to check out vehicles by type and compare specs and features. After a customer zeroes in on a car, it's time to visit the dealership for a chat with an "Authorized Dealer Contact" to examine the vehicle and go over the fine print. Haggling would only arise if the customer has a trade-in; that valuation is between the customer and the dealer. The customer can check out the Costco Member-Only Price Sheet, which "displays your prearranged pricing. The savings can be displayed in one of two ways: One version lists pricing for all models available at the participating dealership; the other will show a VIN-specific price based on the vehicle you select, including any applicable manufacturer incentives or rebates." And for those looking on the battery-powered shelves, the program offers the same $1,000 off the Chevy Blazer EV and Equinox EV.