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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.

FCA axes Dodge Journey and Grand Caravan for 2021

FCA confirmed this week that Dodge will end production of both the Grand Caravan and the Journey after the 2020 model year, leaving the brand without a front-wheel drive crossover for the first time since 2008, and without a minivan for the first time in nearly four decades.  "The year was 1983. Ronald Reagan was President of the United States of America. Lech Walesa was the Nobel Peace Prize Laureate. The Internet was created, and the first mobile phones were introduced to the public. U.S. astronauts completed the first space shuttle spacewalk; Michael Jackson performed the 'moonwalk.' The Baltimore Orioles won the World Series ... and Chrysler hit a home run with the introduction of the first minivan," FCA (then Chrysler LLC) said when it celebrated the minivan's 25th anniversary in 2008.  1984 Dodge Caravan View 9 Photos Since that anniversary, the Dodge variant of FCA's minivan has changed very little. It has received interior and powertrain improvements, including the introduction of the 3.6-liter "Pentastar" V6 in 2011, but its fundamental architecture has remained constant. The lack of attention it received came to light in 2019, when the outdated powertrain disqualified it from new-car sales eligibility in California.  The prior 25 years notwithstanding, the story of the Dodge Journey is somewhat similar. Introduced in 2008 as a 2009 model, it was praised as one of Chrysler's better, more modern offerings when it hit dealerships. Like the Grand Caravan, it later benefited from an interior overhaul and the introduction of the 3.6-liter V6, but its bones remained unchanged for the duration. This lack of attention showed, as the Journey slipped from borderline-competitive to also-ran.  2010 Dodge Journey R/T View 3 Photos The discontinuation of the Grand Caravan and Journey eliminates 40% of the Dodge lineup. The two models represent more than 38% of the brand's sales volume so far in 2020. For 2021, only the Charger, Challenger and Durango will remain. Minivan buyers will still have options at Chrysler, which offers several variants of the Pacifica, including the new Voyager, which is a stripped-down model aimed at budget-conscious buyers who would previously have been drawn to the bare-bones Dodge.  With this latest round of downsizing, Dodge will join Ram, Chrysler, Fiat and Alfa Romeo in the ranks of FCA brands offering four or fewer models; only Jeep will offer more.  Related Video:

7 major automakers to build open EV charging network

A new joint venture established by BMW, GM, Honda, Hyundai, Kia, Mercedes-Benz and Stellantis will build a new North American electric vehicle charging network on a scale designed to compete with Tesla's industry-benchmark Supercharger network. The 30,000-plus planned new chargers will accommodate both Tesla's almost-standard North American Charging System (NACS) and existing automakers' Combined Charging System (CCS) options, effectively guaranteeing compatibility with the vast majority of current and upcoming electric models — whether they're from one of the involved automakers or not.  "With the generational investments in public charging being implemented on the Federal and State level, the joint venture will leverage public and private funds to accelerate the installation of high-powered charging for customers. The new charging stations will be accessible to all battery-powered electric vehicles from any automaker using Combined Charging System (CCS) or North American Charging Standard (NACS) and are expected to meet or exceed the spirit and requirements of the U.S. National Electric Vehicle Infrastructure (NEVI) program." Critically, the automakers involved will have a say in how the charging tech is implemented, guaranteeing that the hardware will play nicely with each automaker's in-house charging systems. Hyundai and Kia, for example, were hesitant to jump on board the Tesla NACS bandwagon earlier this year over concerns that the Supercharger network is insufficient for powering the two automakers' 800-volt charging systems; similar tech is used by Volkswagen and Porsche.  In addition to providing much-needed capacity and high-output charging for America's growing fleet of electric cars and trucks, the new network will integrate seamlessly with each automaker's in-app and in-vehicle features, rather than forcing customers to use third-party tools and payment systems, as is the case with some existing public charging infrastructure.  "The functions and services of the network will allow for seamless integration with participating automakersÂ’ in-vehicle and in-app experiences, including reservations, intelligent route planning and navigation, payment applications, transparent energy management and more. In addition, the network will leverage Plug & Charge technology to further enhance the customer experience," the announcement said.