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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 extends production cuts, affects Cadillacs, Camaro and Acadia

General Motors is extending production cuts at some of its North America factories due to a chip shortage that has roiled the global automotive industry, the U.S. carmaker said on Thursday. The move's impact has been baked into GM's prior forecast that the shortage could shave up to $2 billion off this year's profit. GM's Lansing Grand River assembly in Michigan will extend its downtime through the week of April 26. The plant makes Chevrolet Camaros and Cadillac CT4 and CT5 sedans. It has been out of action since March 15. GM's Spring Hill assembly in Tennessee will shut down for two weeks starting the week of April 12. The plant makes the Cadillac XT5, XT6 and GMC Acadia. The company said it has not taken downtime or reduced shifts at any of its more profitable full-size truck or full-size SUV plants due to the shortage. The news was first reported by CNBC. Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila

Google Earth helps sheriff's department find stolen car [w/video]

A stolen-vehicle case opened back in March was recently solved with the help of a property owner using Google Earth, a virtual globe and mapping service similar to Google Maps, ABC News reports. The man, who remains anonymous, found the stolen GMC Yukon while he was surveying his property in George County, Mississippi, using the map service and, judging by the top-down satellite image, thought he found a "shooting house" on his hunting grounds.
When he drove out to the suspicious structure, he realized it actually was a sport utility vehicle wedged in thick brush about 70 yards from the nearest road, so he called the police.
Law enforcement officers had arrested a female suspect in the case earlier based on eyewitness accounts, but didn't prosecute her because the stolen SUV hadn't been found. Ben Brown, a lieutenant detective with the George County Sheriff's Department, says that he ran the plates and confirmed the SUV was the stolen vehicle the department had been looking for.