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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.

2019 GMC Sierra Denali First Drive Review | The more things change...

ST. JOHN'S, Newfoundland — Canadians love their GMCs. Both anecdotal and statistical evidence supports this. In certain areas of Canada, the Sierra outsells the Chevy Silverado. But in this area of Canada, Cape Spear, the morning fog and salt air are thick. This is the most eastern point in Canada, and the most eastern point of North America if you don't count Greenland. We woke up early and drove to the coast in the new 2019 GMC Sierra Denali, hoping to catch what was promised to be an absolutely spectacular sunrise. The sunrise was a no-go thanks to the fog, turning the sky into a grey mist that melted into the Atlantic. Still, if the world had an edge, this is what it would look like. Driving in an inspiring place like this invites introspection, and since we're in an GMC Sierra, why not examine the brand's place in the world? Recall that for years, a GMC showroom was just packed with slightly more expensive versions of other GM products. Badge engineering, if you will – a dirty word in our business, applied to such notable machines as the Cadillac Cimarron, Buick Terraza, Chevy Aveo and Saab 9-7X. Things, at least on the surface, seem to be changing. GMC says it's making a concerted effort to differentiate its product portfolio from the rest of GM, but the results have been mixed. The brands were supposed to have less product crossover. There's no GMC version of the Chevy Traverse and, initially, there was no Chevy equivalent of the GMC Acadia, though the new Blazer kills that advantage. The Equinox and Terrain are still basically the same vehicle, as are the new 2019 Silverado and 2019 Sierra. At least the two trucks look decidedly different. There's still a family resemblance, but most of the bodywork has been changed. Where the 2019 Silverado adopted some curves, the Sierra stuck with straight lines. Compare things like the headlights, wheel wells and doors. The Sierra still has a massive grille and — aside from the AT4 off-road trim — packs on as much chrome as a 1958 Cadillac, but that's what customers want these days. The Ford F-150 and Ram 1500 are no different in this regard, packing lots of chrome, hard edges, and frontal areas that would give passenger trains a run for their money. At first glance, you'd be hard pressed to tell the Sierra and Silverado's interiors apart from both each other and the outgoing models. It's basically the same design, though the Sierra makes do with some slightly nicer materials.

GM recalls 330,000 fullsize trucks for airbag replacement

General Motors has announced a recall of 330,198 fullsize pickups in the US in the aftermath of the announcement made on May 19 that doubled the number of vehicles being called in to replace Takata's defective airbag inflators. That announcement expanded the nationwide recall to an estimated 33.8 million vehicles in the US. Heavy Duty versions of the 2007 and 2008 Chevrolet Silverado and GMC Sierra are included in GM's move, for the purpose of replacing the passenger airbag inflators. The announcement made by the National Highway Traffic Safety Association cited long-term exposure to moisture as a possible cause of the inflator issues. GM says it isn't aware of any problems with the recalled pickups due to moisture, nor has it had any reports of crashes, injuries, or fatalities, and has not received any complaints. GM will notify owners, who can then take their trucks to the dealers to have them repaired free of charge. You'll find a statement from GM and the recall notice from NHTSA below. Related Video: General Motors Statement General Motors is recalling 330,198 2007 and 2008 model year full-size Chevrolet Silverado heavy duty and GMC Sierra heavy duty pickup trucks in the U.S. to replace the passenger air bag inflators manufactured by TK Holdings Inc. (Takata). This recall implements Takata's air bag inflator equipment recall announced on May 19, 2015 (NHTSA recall number 15E-041). GM is not aware of any humidity-related ruptures in Takata air bag inflators in any GM-badged vehicles in the field and knows of no crashes, injuries, fatalities or complaints regarding air bag performance in these vehicles. Including Canada and exports, the total number of vehicles being recalled is 374,715. Population breakdown: United States 330,198 Canada 39,630 Exports 4,887 Total 374,715NHTSA RECALL NOTICE: Report Receipt Date: MAY 28, 2015 NHTSA Campaign Number: 15V324000 Component(s): AIR BAGS Potential Number of Units Affected: 330,198 Manufacturer: General Motors LLCSUMMARY: General Motors LLC (GM) is recalling certain model year 2007-2008 Chevrolet Silverado 2500HD and 3500HD trucks manufactured November 28, 2006, to August 29, 2008, and 2007-2008 GMC Sierra 2500HD and 3500HD trucks manufactured November 27, 2006, to August 29, 2008.