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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.

2021 GMC Canyon AT4 will offer an Off-Road Performance Edition Package

In March 2018, GMC announced the 2019 Sierra 1500 AT4, the alphanumeric finale denoting heightened ridge height and off-road capability. In December of that year, GMC took the AT4 further, creating an Off-Road Performance Package that boosted horsepower and torque, and re-soled the 18-inch machined rims in Goodyear Wrangler DuraTrac Mud Terrains. History will repeat itself in 2020, one truck size category down. GMC unveiled the Canyon AT4 (pictured) in Vail, Colorado, earlier this month, and now GM Authority reports that a Canyon AT4 Off-Road Performance Edition Package is on the way later this year.  The Canyon AT4, which replaces the Canyon All Terrain, upgrades the standard truck with all the erstwhile All Terrain kit like tuned suspension, Advanced Hill Descent Control, transfer case skid plate, automatic locking rear differential, and 31-inch Goodyear Wrangler DuraTrac tires on 17-inch aluminum wheels. Design tweaks include the new, bolder front fascia and red recovery hooks. The Canyon AT4 Off-Road Performance Package goes a different route than on the Sierra, improving ruggedness instead of engine output. GMA says the suite includes front and middle performance skid plates, rocker protection, a spray-on bedliner, performance exhaust tip, and 17-inch gloss black aluminum wheels in favor of the Dark Argent Metallic units. A front leveling kit removes the factory rake. This variant will wear a black AT4 badge as opposed to the regular red and chrome AT4 denominator. Inside, we'll guess the AT4's Kalahari stitching and embroidered headrests stay in the game. They'll be joined by all-weather mats. Since GMC hasn't announced the upfit, we don't have pictures or pricing. Tallying up what individual options we could on the 2020 Canyon All Terrain came to $1,970, but that doesn't reflect pricing for next year's new AT4 trim, nor does it include components like the front leveling kit or gloss black wheels. GM Authority said production should begin in June or July, so we can look forward to info closer to summer. Related Video:    

Buick, GMC making OnStar Connected Services standard

The thing about the future is that so long as you're alive, you're going to get there whether you like it or not. Thanks to over-the-air connections essentially being a compulsory part of EV ownership and an increasingly important — and profitable — component of ICE ownership, it's easiest for automakers to install full-featured Internet connections in every vehicle. GM has taken the first step, a report in GM Authority saying that as of June 2, all Buick and GMC models are sold with the Onstar Connected Services plan good for three years. The OnStar site shows the Connected Vehicle tier that comes with a Wi-Fi hotspot costs $24.99 per month, which would be $900 minus a few pennies for three years. At the top end is OnStar Premium that runs about $1,800 for three years. Both include Connected Services features, yet GMA reports that depending on the vehicles, OnStar Connected Services will cost between $905 and $1,675. Only the GMC Hummer EV Edition 1 is excluded for now. GM confirmed the change to GM Authority, saying, "This offering provides our owners with a full suite of OnStar and Connected Services for three years, providing them with more time to enjoy services such as remote key fob, Wi-Fi data and OnStar safety services. By including this plan as standard equipment on the vehicle, it provides more customer value and a more seamless onboarding experience." Three trims of the GMC Sierra 1500 and two trims of the GMC Yukon and Yukon XL come in at the low end, OnStar adding $905 to their MSRPs. Almost every other vehicle gets hit with a $1,500 charge. The GMC Sierra HD Pro is the only model to charge $1,675 for it, which GMA breaks out as a "$1,500 3-year subscription and $175 OnStar & GMC Connected Services Capability." This brings up the question of the price differences; we can't tell if there's a difference in feature content between the price tiers, or why the Sierra HD gets the extra $175 fee. The automaker told GMA the upcharge will be folded into the MSRP. On the configurator for the Sierra 1500 SLE, for instance, the dialog box for three years of OnStar at $1,500 is automatically checked and can't be unchecked. The Buick configurators we tried don't mention OnStar.