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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.

GM recalling 316k vehicles due to headlamp faults

General Motors has announced a recall covering 316,357 vehicles globally, due to the possibility of sporadic or permanent failure of the low-beam headlamps. 273,182 of these vehicles are in the United States, while the remaining affected units are in Canada, Mexico, and elsewhere. This recall includes the 2006-09 Buick LaCrosse (pictured above), 2006-07 Chevy TrailBlazer and TrailBlazer EXT, 2006-07 GMC Envoy and 2006 GMC Envoy XL, 2006-07 Buick Rainier, 2006-08 Saab 9-7X, and 2006-08 Isuzu Ascender. In an email sent to Autoblog, General Motors explains that if the headlamp driver modules are not functioning correctly, "the low-beam headlamps and daytime running lamps could intermittently or permanently fail to illuminate." GM states that this problem does not affect things like high-beams, turn signals, marker lamps, or foglamps. As of this writing, GM states it "has not been able to confirm whether the HDMs in these vehicles caused any vehicle accidents." The National Highway Traffic Safety Administration has been notified, but the recall has not yet posted to the government agency's website. Scroll down to read the full details in GM's email. General Motors is recalling 273,182 Buick LaCrosse sedans and Chevrolet, GMC, Buick, Saab and Isuzu midsize SUVs in the U.S. for possible intermittent or permanent loss of low beam headlamps. Affected models are: 2006-2009 Buick LaCrosse sedans; 2006-2007 Chevrolet TrailBlazer and 2006 TrailBlazer EXT; 2006-2007 GMC Envoy and 2006 Envoy XL; 2006-2007 Buick Rainier; 2006-2008 Saab 9-7X and 2006-2008 Isuzu Ascender midsize SUVs. If the headlamp driver modules is not operating correctly, the low-beam headlamps and daytime running lamps could intermittently or permanently fail to illuminate. This condition does not affect the high-beam headlamps, marker lamps, turn signals, or fog lamps. GM has not been able to confirm whether the HDMs in these vehicles caused any vehicle accidents. The total population, including the U.S., Canada, Mexico and exports from North America is 316,357. The NHTSA was sent the Part 573 information for this recall on November 25. It has not yet posted to the NHTSA website. Featured Gallery 2008 Buick LaCrosse CXS News Source: General Motors Recalls Buick Chevrolet GM GMC Isuzu Saab SUV Sedan chevy trailblazer buick rainier isuzu ascender

GMC Hummer EV heads north for winter

GMC announced early Tuesday that its new Hummer EV pickup is ready to head north for winter testing. What might seem like a trip in the wrong direction to us warm-blooded enthusiasts is a critical next step in the development of GM's new electric truck.  We also got a couple of teaser pics of the Hummer EV at GM's Milford Proving Grounds, along with two shots of development prototypes being assembled, of which GM says it has "a series." There's not much new to see here, but GM says there's more to come. "The GMC HUMMER EV has arrived at GM’s Milford Proving Grounds to continue validation tests and will head to northern Michigan to run through the teamÂ’s grueling winter testing process," GM said in its announcement. "We will document the journey and share updates in the coming weeks and months." The GMC HUMMER EV arrived at GM?s Milford Proving Grounds to c View 3 Photos The GMC Hummer EV Edition 1 will feature three electric motors, enabling torque vectoring. GMC says these motors produce 1,000 horsepower, though we don't yet have a final torque figure. Power comes from a 24-module Ultium battery pack which can provide an estimated 350 miles (or more) of range. GMC says this new architecture supports 800-volt fast charging up to 350 kW, which is comparable to the system Porsche introduced with its Taycan electric sedan, and GMC says it can replenish 100 miles of range in just 10 minutes. Planned variants include a two-motor setup, and an alternative three-motor version without torque vectoring. The Hummer EV rides on fully independent suspension with adaptive air shocks. They can provide continuous damping adjustments for comfort, and have a height adjustment range of 6 inches. When set in its max-height off-road mode, it has two additional inches of ground clearance, and the "Extract Mode" will lift it six inches higher than default. The Edition 1 model also comes with standard 35-inch mud terrain tires, and combined with the suspension, the Hummer EV has a fording depth of two feet and the capability to climb over an 18-inch vertical obstacle. Edition 1 Production begins late next year, with a starting price of $112,595. In fall 2022, we'll see the regular top trim starting at $99,995; In spring 2023, weÂ’ll get a mid-level trim that has three motors, air suspension and four-wheel steering -- but no torque vectoring -- starting at $89,995.