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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.

GMC Sierra Denali CarbonPro bed is finally, almost here

GMC revealed the Sierra 1500 with the optional CarbonPro bed on March 1, 2018. The bed wasn't available at launch, though. You can't buy it now, either, but it will hit dealerships with limited availability after production starts in early June, exclusively for the Denali 1500 and AT4 1500 trims. The carbon floor and sides replace the steel panels in a normal bed, providing "strength, durability, and scratch resistance" and a potential 59-pound weight saving, depending on the truck's configuration. To make sure the bed had a chance, development engineers replicated "extreme use scenarios" like dropping 1,800-pound gravel loads, 450-pound steel drums, and cinder blocks from various heights. They put a 250-pound man on a snowmobile with studded tracks, had him drive into the bed and then go wide-open throttle. We're told the result was "minimal scratching." On top of the extreme weather testing any vehicle goes through, the team also put a generator in the bed and aim the exhaust into a corner to ensure vibration and direct heat wouldn't deform the carbon fiber. Because of the finer shaping area-specific strength possible with carbon fiber, the bed provides one cubic foot of additional payload space by having its sidewalls pushed further out. The CarbonPro bed doesn't need a bedliner, and is grained at the top for better traction but smooth on the bottom for easier hosing down and dirt removal. Tie-downs at the front of the bed work with molded indentations to hold motorcycle tires, and slots in the sidewalls hold two-by-sixes. The truck maker says the carbon-lined payload area confers "best-in-class dent, scratch and corrosion resistance," but we suppose the nation's pickup truck army will prove that or not. The trucks likely won't have the hardest life at the start, since the Sierra Denali costs $56,790 before even a basic option like four-wheel drive. The real test probably won't come until around 2029, when third owners begin treating their aerospace-inspired thoroughbreds like dray horses.

2022 Chevy Tahoe, Suburban and GMC Yukon get updated transmission

General Motors' full-sized SUVs have slipped in one more change before the year turns. GM Authority reports that the 2022 Chevrolet Tahoe and Suburban, and the 2022 GMC Yukon and Yukon XL equipped with gas V8 engines, will pick up a revised ten-speed automatic transmission. The new unit carries RPO code MHS, and Chevrolet communications rep Catherine Scales told GMA the updated gearbox "allows our manufacturing and dealer teams to more easily align the specific calibration needed for the transmission and can enable OTA updates in the future." It seems GM wants to make it easier to update the transmission's tuning and calibration in the future with the automaker's networked Vehicle Intelligence Platform/Global B electronic architecture. The 10-speed auto comes bolted to the 5.3-liter V8 and the 6.2-liter V8. The 3.0-liter inline-six Duramax diesel continues with the 10-speed automatic already in use. To recap the other changes for the full-sizers, we'll start with the 2022 Tahoe and Suburban, which get a new 12.3-inch digital instrument display to replace the former 8-inch unit and physical gauges. Navigation will be standard equipment displayed on the 10.2-inch infotainment touchscreen on all trims barring the base LS. Lane-keeping assist and parking sensors are also now standard, while reverse automatic braking is added to the Enhanced Display and Alert package on the top trims. Finally, the 6.2-liter V8 option is expanded to the Z71, RST and Premier trim levels, but it requires selecting one or more packages on the Z71 and RST. Moving onto the 2022 Yukon, availability of the 6.2-liter V8 expands to the AT4 trim, and the big V8 comes with a shiny pair of exhaust finishers. Redwood Metallic paint joins the exterior color palette, more wheel options are on offer, and illuminated sill plates can gussy up the rocker panels . An Enhanced Trailering Technology Package adds 13 cameras with the option for an interior accessory camera for those with enclosed haulers. On the safety side, expect reverse automatic braking to join the list of available driver assistance features. Inside, the Yukon welcomes the 12.3-inch digital cluster, the Yukon Denali welcomes the power sliding console as a standard feature instead of a $350 option.  Related Video: