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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.

Hummer EV SUV overland camper teased from GMC and EarthCruiser

At the end of March this year, GMC announced a collaboration with EarthCruiser. The automaker's Hummer team would work with the Oregon overlanding company's research and design division to develop an upfit for EVs, initially integrated into the Hummer EV pickup. For those not familiar with EarthCruiser, they’ve made wild overlanding vehicles like the Terranova, FX and EXP, pretty rad and pretty expensive stuff. The preview back then was a shadowy render that looked much like the silhouette of the Hummer SUV thanks to the living quarters slid into the pickup bed. The most apparent changes were solar panels integrated into the roof, and a cargo bay on the side of the slide-in. The duo's just put a much better tease on Instagram revealing the campfire-lit outline of what this version of an overland Hummer will look like. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. EarthCruiser is known for its pop-up roofs. This looks like a choice execution here, with near 360-degree visibility and integrated LEDs. Also, dig what looks like a platform off the back of the rig. We're going to guess that's either a slide-out or the rear flap on the camper top locked into the raised position. The cargo boxes on the side look neat, we look forward to finding out how they work and what they store. We also wonder if they'll be optional and whether they extend beyond the wheel arches, making a really wide pickup truck even wider.  We're not sure it will be "every overlanderÂ’s dream," but we are sure some stargazers are going to have some very sweet dreams in it. Slated for debut this month, look for it at Overland Expo Mountain West in Colorado, the same place the GMC Canyon AT4X OverlandX made its public debut in 2021, and where in Arizona last year the GMC showed the Sierra's outdoor potential with an Ultimate Overland Vehicle built on the Sierra 1500 AT4X.  Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

GM ending stop-sale order on heavy-duty trucks

General Motors responded to an inquiry from Autoblog regarding a stop-sale order on its full-size heavy-duty pickup trucks. Here's GM's official statement. GM is committed to building the highest quality products possible. We paused delivery on a small number of HD pickups with the 6.6 liter Duramax engine last week to finalize an investigation into a potential quality issue. The investigation has been completed and the stop sale will be lifted for the small number of vehicles at dealerships.Customers can be assured GM’s heavy duty pickups are covered by a 5 year/100,000 mile powertrain warranty. The original article continues below. General Motors has reportedly sent its Chevrolet and GMC dealers a stop-sale order that applies to some examples of the 2022 Silverado HD, the 2022 Silverado MD, and the 2022 Sierra HD. The units affected by the stop-sale order may develop an engine-related problem. Citing anonymous sources, website GM Authority wrote that the Duramax 6.6-liter turbodiesel V8 in the affected trucks can hydrolock, which means liquid could enter the cylinders and cause a substantial amount of damage. The report does not specify where the liquid would come from; hydrolocking can happen by driving through a deep puddle of water, for example, but a large amount of coolant can cause it as well. The publication adds that the stop-sale order was assigned internal reference number N222362910. It also notes that the trucks included in it can't be sold, delivered to buyers, traded with another dealer, sent to auction, or even used for demonstration purposes until further notice. Earlier in April 2022, GM Authority reported that General Motors planned to buy back an unspecified number of Silverado HD and Sierra HD trucks due to quality-related issues with the 6.6-liter V8. Details about the problems experienced by customers haven't been released; all we know is that each truck will be replaced, though the replacement may not have the same equipment due to the ongoing chip shortage. Related video: