General Motors announced a major restructuring of its global business, shutting production at five facilities in North America and slashing its staff. GM said it will reduce its salaried workforce by 15%, including a quarter of the company's executives.

GM's (GM) new motto is "Zero Crashes, Zero Emissions, Zero Congestion," signaling a shift to self-driving, electric vehicles. But the restructuring is also about making cars people want now. Customers are increasingly shunning sedans in favor of SUVs and hatchbacks.

GM is reinventing itself, cutting 15% of its salaried workers

R. Neal's picture

"We're going to be winning so

"We're going to be winning so much we'll get tired of winning!"

Factchecker's picture

Sad day

And they're killing the Volt. : >(

GM seems to be claiming they're moving into the future by sticking with their favored, high profit SUVs and pickups. I think they may be confused. They still have a technology lead over all except Tesla, IMO, but I'm not holding my breath they'll use it smartly.

R. Neal's picture

Killing the Volt doesn't seem

Killing the Volt doesn't seem to square with making self-driving electric cars. Odd.

Factchecker's picture

Indeed. I'm not looking

Indeed. I'm not looking forward to fully self-driving cars, but with them or without them, transportation is going electric, while SUVs and pickups are mostly marketed to materialistic, high-consumption Americans. Those vehicles are about as sustainable as big box stores. No manufacturer can yet electrify them for anywhere near the price, range, and payload capacity of the ICE versions, for at least some years to come.

GM is pretty much acknowledging they're going with small ICE power plants in the big vehicles and lobbying the government for weaker CAFE standards. Where the sales of high MPGe EVs are going to come from in order to average the company's CAFE compliance, even to weaker standards, is a mystery. They haven't really mentioned the role of the Bolt EV in all this, but it doesn't seem to be selling well. GM hasn't pushed it or the Volt. And now we know the Volt is going away. If there's an EV sedan coming, they even could (and should IMO) keep the Volt name. But a specific announcement has been lacking, in favor of vague hints about "electrifying" and fuel cells (total BS).

All very troubling for GM. I had higher hopes for Mary Barra, but she seems to be playing it safe for the 5-year out revenue, without seriously aiming for sustainable transportation.

Knoxoasis's picture

Sad

As a person of a certain age who remembers when Cadillac was the "Standard of the World", I am saddened to see GM abandon the effort to restore Cadillac to its former glory. Over the past few years Cadillac has been making world beating cars like the ATS and CTS, especially in V form. In making the announcement, GM said that its future vehicles will be sold on 4 or 5 shared platforms between all GM brands, meaning GM is adopting the Ford strategy of making its luxury lineup consist of nothing more than tarted up versions of its baseline Chevy brand.

They may as well close Cadillac now. If it couldn't compete before, it surely won't now. Very sad.

Maybe with the new profits GM anticipates by cutting costs in the form of workforce we can ask them for some of our $11 Billion bailout back?

jbr's picture

More bumps ahead for U.S. auto industry

Auto industry analysts told NBC News more industry downsizing is likely — and Trump's trade policies aren't helping.

After General Motors layoffs, more bumps ahead for U.S. auto industry

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