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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.

2021 GMC Canyon AT4 Off-Road Performance Edition is ready to hit the trail

GMC introduced a more capable Canyon AT4 named Off-Road Performance Edition that gains modifications like skid plates and a beefier suspension. It can venture further off the beaten path, but it won't get there faster. Based on the AT4, which is already better suited to venturing into the woods than the standard Canyon, the Off-Road Performance Edition gains a taller suspension and loses its sizeable front air dam to offer a 30-degree approach angle. GMC knows adventurers will be tempted to put that figure to the test, so it also added skid plates made with 5/32-inch aluminum to protect the radiator, the front differential, the steering gear, and the oil pan. Full-length rock rails on both sides shield the rocker panels from expensive encounters with boulders and other obstacles. Finally, the Off-Road Performance Edition stands out from the AT4 with specific 17-inch wheels painted in gloss black, black AT4 logos, and black exhaust tips. 31-inch Goodyear Wrangler tires come standard. Changes in the cabin are limited to floor liners. Out back, the cargo box receives a spray-in liner. Don't look for Ram 1500 TRX-like performance, because it doesn't sound like GMC made any major mechanical modifications to the Off-Road Performance Edition. Power comes from a 3.6-liter V6 that sends 308 horsepower and 275 pound-feet of torque to the four wheels via an eight-speed automatic transmission and an automatic locking rear differential provided by Eaton. AT4 buyers can order a 2.8-liter Duramax turbodiesel four-cylinder with 181 horsepower and a stout 369 pound-feet of torque on tap for an additional $4,375, but there's no word yet on whether this fuel-saving engine will be available on the Off-Road Performance Edition, too. GMC's 2021 Canyon AT4 Off-Road Performance Edition will go on sale later in 2020, though pricing information hasn't been announced yet. For context, the standard AT4 costs $39,395 in its most affordable configuration.  

2018 GMC Terrain loses the V6 and gains a diesel for an all-turbo lineup

You may have noticed that compact crossovers are kind of a big deal these days. After eight years on sale, GMC is finally getting a new version of its littlest ute, the Terrain, for 2018. And it can't arrive a moment too soon. The 2018 GMC Terrain made its debut tonight on the eve of the 2017 Detroit Auto Show. The 2018 Terrain looks to be completely new, and is now built on GM's D2XX platform. It again shares a platform and major components with the Chevrolet Equinox; like the 2018 Equinox, the Terrain will offer three engines, including two turbocharged gas four-cylinders and a turbodiesel four. The base 1.5-liter gas four makes 170 horsepower and 203 pound-feet of torque, while the 2.0-liter inline-four puts out 252 hp and 262 lb-ft. (The 2.0 basically takes the place of the 3.6-liter V6 offered in the outgoing Terrain.) GM's 1.6-liter diesel four will also be available, making 137 hp and 240 lb-ft of torque in this application. Both gas engines will be paired with nine-speed automatic transmissions, while the diesel gets a six-speed auto. No fuel-economy claims have been made, but we expect the new models to outdo the current versions, with the diesel reaching around 40 mpg on the EPA highway cycle. View 14 Photos The new Terrain's design is equally fresh and does a good job of differentiating it from the related Equinox, with details very reminiscent of the new GMC Acadia. The lighting elements are even more intricate here, with LEDs used for the daytime running lights and taillamps. GMC designers gave it the floating-roof look, which is successful aside from the odd placement of a trim badge at the base of the D-pillar. Terrains will again be available in SL, SLE, SLT, and range-topping Denali trim, with the latter featuring the signature satin chrome grille, chrome accents, and monochrome paint scheme GMC uses on all of its top-trim models. The interior sees an upgrade in materials and a more-thoughtful layout, with a new version of GM's Electronic Precision Shift gear selector using buttons and switches instead of a lever to open up more space on the center console. Both front- and all-wheel-drive models get a Traction Select system that will tune the shift points and throttle points for specific driving conditions via a knob at the rear of the console. On models equipped with all-wheel drive, a front-drive mode disconnects the rear axle to improve fuel economy.