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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.

2019 GMC Sierra 1500 prototype shows off differences from Silverado

Now that the new Silverado has made its debut, we're awaiting the reveal of its mildly restyled twin, the GMC Sierra 1500. While it likely won't be that different as far as capability and major equipment are concerned, we are looking forward to seeing what design changes it will have. Based on these recent spy shots, the changes will be mild, but still enough to make it visually distinctive. One of the more obvious differences will be in the front fascia treatment. Unlike the Silverado's grille that's level with the top of the headlights, the GMC's will rise above the lights, which will also yield a slight drop on each side of the hood to meet the lights. The grille is quite tall, extending far below the headlights, too. We can make out, behind some mesh, two dips on the outer edges of the grille that give the Sierra a more menacing frown. Large foglights are also found right near where the scoops for the wheel air curtains, and the headlights are unified on the edges, rather than split on the Silverado. Along the sides, the sheet metal looks relatively unchanged. At some angles, we can make out the distinctive shoulder line from the Silverado that runs up to about the rear mirrors where it stops to make room for another crease that rises up from somewhere in the middle of the front doors to lead to the front. The wheel arches are decidedly different from the Silverado's though. While the Silverado has fairly rounded arches, the Sierra's have a rear-slanted bevel to the fronts of the arches and a rounded 90-degree corner at the rears. There isn't much we can tell about the rear except for the taillights. They're quite large, and unlike the Silverado's, there aren't any areas where the sheet metal intrudes. It also appears that the tops of the taillights extend farther forward into the bed sides than the Chevy's. Because the Sierra has almost always been a mechanical twin of the Silverado, we expect it to offer the same 5.3-liter and 6.2-liter V8s, as well as the new 3.0-liter diesel inline-6. Also, being a GMC, it will likely have a flashy, chrome-laden Denali trim level. We also will see the fully revealed model soon, as Automotive News reports the debut will be on March 1. Related Video: Featured Gallery 2019 GMC Sierra 1500 spy shots View 39 Photos News Source: Automotive News Spy Photos GMC Truck chevrolet silverado

Expect greater differentiation in GM's next-generation SUVs

General Motors says its next-generation Chevrolet Tahoe, Suburban, GMC Yukon and Cadillac Escalade models will offer shoppers improved interior differentiation. Car and Driver recently caught up with Chris Hilts, GM's creative manager of interior design, who said that the cabins will all feature unique instrument panels, consoles, center stacks and switchgear moving forward. Apparently GM is now aware that consumers may be bothered by the fact that today's $85,000 Escalade has effectively the same cabin as a $45,000 Tahoe. Hilts says SUV buyers want more refinement than their pickup purchasing counterparts - and those same buyers also want their SUVs to have more exterior differentiation between the company's Silverado and Sierra pickup lines. Shocking.
That all sounds good to us, but we've heard this song and dance before. GM made big waves about how different the new-for-2013 Silverado and Sierra would look from each other, but judging by what we've seen so far, GM's stylists are painting in shades rather than with the full spectrum. For more on the what to expect out of GM's new SUVs, click on the C/D link below.