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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.

Lincoln, GMC clean up in AutoPacific Vehicle Satisfaction Awards

In recent years, there have been a lot of dire pronouncements made about Lincoln's future, or a lack thereof. But Ford's premium marque is like the Rocky Balboa of the auto business; every time the company seems ready to go, it comes back for more. Apparently, that dogged persistence is paying off, because the industry analysts at AutoPacific have put a big check in their win column with their newly released 2014 model year vehicle satisfaction survey. And despite recent enmity for its seemingly never-ending recall saga, it appears General Motors knows how to satisfy new owners, too.
In fact, not only was Lincoln named as the premium brand with the highest new owner satisfaction, even scored three models on the list of passenger cars with the most gratified buyers - the MKS, MKZ and MKZ Hybrid.
GM's stable of brands was also among the top companies in this year's survey. GMC was named the top popular brand by AutoPacific, with its Sierra pickup and Acadia crossover singled out for awards in their segments. Chevrolet also did incredibly well, with more cars on the list than any other brand. The Corvette, Camaro, Sonic and Impala all made the cut in their respective categories.

2025 GMC Yukon AT4 teased, will likely follow 2025 Suburban template

It's time to begin teasing the 2025 GMC Yukon, the luxury truck division doing so with a glimpse of the front fascia on the AT4 trim. This being a refresh, we're not looking for major changes to hard points. In contrast to today's Yukon, it seems the new face will stress horizontal breadth instead of highlighting the central aspect of a giant grille and skid plate area. Starting with the taller C-shaped headlights on the 2025, a shorter horizontal element at the top no longer reaches all the way to the grille surround, and it's separated from the three main beams below by a body-colored piece extending from the grille cradle. Below the light, a new lower bumper treatment probably increases the aggression compared to today's truck. Instead of black centerpiece that houses the skid plate and a pair of tow hooks, it appears the entire bumper will be black and wrap around into the fenders. Finally, the grille looks the same, but its crossbars have been reprofiled.  As sibling to the 2025 Chevrolet Tahoe and Suburban that Chevy revealed last November, we expect many of the same updates here. Outside, that would mean refinements to the independent rear suspension for more nimble handling, new wheel designs, and availability of the second-generation 3.0-liter Duramax inline-six with 305 horsepower and 495 pound-feet of torque instead of today's 277 hp and 460 lb-ft. Inside, we expect a new instrument panel housing a 17.7-inch touchscreen for infotainment, and a column shifter replacing the push buttons on the center console. Updated trim materials — along with the overdue infotainment upgrade — should provide a finer sense of luxury than what's currently on offer.  If tech treats carry over, buyers will have access to the Connected Cameras feature for viewing and recording inside and outside of the vehicle for crash and security purposes. An Interior Motion Detection system can detect "micro-movements" in the cabin that could signal a baby or a pet left in the vehicle.  The Yukon might go further than the Chevy SUVs, seeing that GMC has some birthdays to celebrate: 2024 is the fifth anniversary of the AT4 trim and the 25th anniversary of the Denali trim. We'll find out later this year, GMC promising the Yukon reveal sometime after the new Acadia begins shipping to dealers.