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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 Tahoe-to-K5 Blazer conversion shop renders Jimmy option

Back in 2019 we told you about a truck that looked like a K5 Chevy Blazer, but was actually a modern late-model Tahoe underneath. It was the product of Arkansas shop Flat Out Autos, which reskinned modern GM full-size SUVs to look like their predecessors. Now, the same shop is planning to release a GMC version, converting Yukons to Jimmys. We were impressed by Flat Out's workmanship, beautifully blending the lines of the Blazer into those of the Tahoe. The result was a cohesive design, not just a panel swap. It clearly required a lot of work, which helped justify the $69,000 price tag, not including the cost of the donor Tahoe. FlatOut Autos GMC Blazer Tahoe reskin 01 View 11 Photos At least one new owner was so impressed that they recently purchased four identical Blazer conversions at once. The quadruplets were all finished in blue with a white roof and all based on brand-new 2020 Tahoes. Obviously, with such demand it was only natural for Flat Out to explore other options. On Facebook the company said it was working on a 1972 version with an eggcrate grille. Now, they've also released a rendering paying homage to the K5 GMC Jimmy. The Jimmy conversion uses the original's quad-headlight face, crosshair grille and GMC badging. Like the Blazer conversion, it adds chrome bumpers and milled door handles while adapting the original's 2-door design to the new truck's 4-door body. The rendering only shows the front three-quarter view, but presumably a new carbon fiber rear door would have to be created as the Blazer's says "Chevrolet" across the back. Flat Out says that all the modern conveniences found on the donor Tahoe will work on the conversion, including parking, blind spot and lane keeping sensors. If you have the coin, it's a great way to have retro style without giving up modern safety and performance. The new Blazer has been disappointing to many fans that had hoped for a Bronco-like SUV. Instead, GM gave us a crossover. The Flat Out conversions might be a good compromise, and expanding it to the GMC brand only makes sense. Obviously there's no requirement to use a GMC Yukon as the donor vehicle for the Jimmy, as it's functionally identical to a Tahoe, but wouldn't you want to keep it in the family? Related Video:

GM diesel pickups first to undergo extra EPA, CARB testing

The effects of Volkswagen's long-running diesel emissions evasion are starting to spill over to other automakers, but General Motors is taking things in stride. The 2.8-liter, four-cylinder Duramax in the 2016 Chevrolet Colorado and GMC Canyon is the first engine to get extra scrutiny by the Environmental Protection Agency and the California Air Resources Board, Automotive News reports. Rather than just the usual in-lab test, it's also being checked on the road. However, the extra evaluation shouldn't have any impact on when the trucks with his mill hit dealers later this fall. "We're in our final stages of the EPA certification, and our launch is on track," Chevy spokesperson Otie McKinley tells Autoblog. The four-cylinder diesel in the trucks makes 181 horsepower and 369 pound-feet of torque, and the automaker is touting low NOx production. In the announcement for the Colorado's specs, the company calls it "the cleanest diesel truck engine ever produced by General Motors." The tech includes exhaust gas recirculation to lower combustion temperatures and improve emissions. There's also a urea tank like on the bigger diesels for full-size trucks, and it gets refilled in time with oil changes. An indication on the instrument panel lets drivers know when that's needed, too. Even with the more demanding testing, the company doesn't seem too worried about the four-cylinder passing. "Part of our development process is on-road and off-road [laboratory] testing," Scott Yackley, Chevy Trucks assistant chief engineer, said to Automotive News. In the wake of the VW scandal, the EPA has pledged more rigorous testing. Before, on-road emissions evaluations were largely limited to heavy-duty vehicles, but the agency has decided to apply the checks more often to other models. There's also now greater cooperation with Canadian authorities.