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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.

What the electric Hummer's size and weight means for its efficiency

The 2022 GMC Hummer EV Edition 1. Tim Levin/Insider If you think driving a pint-sized Nissan Leaf is as good for the planet as driving a huge electric Hummer, think again.  The GMC Hummer EV uses significantly more electricity than other EVs, meaning it produces more pollution upstream.  The electric Hummer weighs 9,000 pounds and its battery weighs as much as a Honda Civic. The new electric Hummer rolls through town without a deafening engine rumble or a cloud of toxic fumes, but it doesn't exactly tread lightly.  The colossal truck weighs an astonishing 9,000 pounds. (Think two Toyota Tacomas, three Honda Civics, or 24 Shaquille O'Neals.) Moreover, the GMC Hummer EV is in many ways a supersized gas guzzler for a new era. It repackages many of the same flaws of hulking SUVs and trucks of years past — and proves not all zero-emission cars are created equal. EVs can be energy guzzlers too On the whole, electric cars use less energy than gas-powered ones. But they aren't all equally efficient.  No surprise here: The Hummer needs more electricity than any other EV on the market to move its elephantine frame. The Environmental Protection Agency rates the pickup at 47 MPGe (miles per gallon of gasoline-equivalent). For comparison, the Tesla Model 3 sedan is nearly three times as efficient, earning a rating of 132 MPGe. The Ford F-150 Lightning, another electric truck, gets 70 MPGe.  This has real consequences: Since the US gets 61% of its energy from oil, coal, and natural gas, the more electricity a car needs, the more pollution it creates upstream.  As the Union of Concerned Scientists put it: "Both EV cars and trucks are much cleaner than their gasoline counterparts, but electric trucks are responsible for more global warming emissions than electric cars simply because trucks are larger and heavier."  The 2022 GMC Hummer EV Edition 1. Tim Levin/Insider The Hummer EV is also resource-intensive to manufacture, requiring a ginormous (and weighty) battery to give people the 300-plus miles of range they desire. You could produce three Chevrolet Bolts with the same battery cells consumed by one Hummer.

2022 GMC Canyon gets a few tiny changes

After overhauling the GMC Canyon lineup into Elevation Standard, Elevation, AT4, and Denali for the 2021 model year, GMC has sprinkled just a few changes on the 2022 Canyon. The midsized pickup's appearance outside and inside doesn't change. The sole alteration in the cabin is that wireless charging won't be come standard on Denali next year, but be an option. That could be GM making lemonade out of lemons, telling customers that if they want hard-to-find semiconductor chips then they're going to have to kick in more dough. The only other change is a new gloss black aluminum spare wheel for the AT4 trim when specced with a Crew Cab and a short bed. This rim replaces the steel spare wheel that remains standard fit on Elevation, Elevation Standard, and Denali. And anyone looking for the High Elevation Package will need to look for it by its new name, the Elevation Premium Package. The Denali Black Edition Package is new for next year for $2,295 on gas-powered models that aren't fitted with the Power Package or the Cat-Back Performance Exhaust. On the exterior, this adds five-inch black assist steps to replace the chrome units, black chrome exhaust tips instead of polished tips, and 20-inch low-gloss-black aluminum wheels with black GMC logo center caps. Inside come premium all-weather floor mats taking the place of the carpeted mats. The current, second-generation Canyon doesn't have long to live, with the third-generation pickup expected for the 2023 or 2024 model year. Spy shots from earlier this year make us think the Canyon and its Chevrolet Colorado twin will pick up styling to emphasize their connection to GM's larger half-ton pickups. Rumor also has it that the Silverado will donate what may be the new midsizer's only powertrain, a turbocharged four-cylinder engine — the new corporate 2.7-liter turbo in this instance. That 310-horsepower mill would supplant both the 2.5-liter four-cylinder 3.6-liter V6 gas engines now available, and the 2.8-liter Duramax diesel. It does, however, appear that GMC will get its own version of the Colorado ZR2, spy shooters catching a camouflaged, high-rise Canyon on a set of Multimatic DSSV dampers. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.