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Illustration: Sarah Grillo/Axios

GM is laying off 14,300 employees. It's shuttering five factories in the U.S. and Canada, and says that two more closings will be announced internationally. By next year, it will no longer make the Buick LaCrosse, the Chevrolet Impala, or the Cadillac CT6 sedan. It's even killing the Chevy Volt plug-in hybrid.

The big picture: Welcome to the modern car industry, which is full of bad news. All the top-selling sedans in America — the Toyota Camry, Honda Civic, Honda Accord, Toyota Corolla, Nissan Altima, and Nissan Sentra — are Japanese.

  • Why it matters: American carmakers can't compete, and are giving up that segment of the market. Instead they're concentrating on trucks, SUVs, and crossovers, which have higher profit margins and growing demand.

What's next? Almost certainly, even more job losses.

  • Car factories are at their most efficient when they run at full capacity. Right now America is capable of producing many more vehicles than there's demand for — roughly 3.2 million vehicles per year, according to Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research. (GM accounts for about 1 million of that.)
  • The logic of efficiency means that yet more factories are likely to close.

President Trump's trade war and steel tariffs are costing the industry billions, including roughly $700 million in higher steel prices at GM alone. Very few big automakers have avoided problems:

  • Ford has already announced that it is effectively getting out of the car business. By 2020, it will no longer sell the Fiesta, Taurus, Fusion or Focus in North America. Only the Mustang will remain, along with a crossover called the Focus Active.
  • Tesla CEO Elon Musk told "Axios on HBO" that the entire company was "within single-digit weeks" of death — in need of layoffs or new financing — earlier this year.
  • Nissan CEO Carlos Ghosn, after trying to push through a merger with France's Renault that neither company really wanted, is now sitting in a Japanese jail. A Nissan whistleblower told Japanese authorities that Ghosn was being paid tens of millions of dollars in undeclared income. (Wall Street Journal editorial: "The Ghosn Inquisition")
  • Fiat Chrysler is struggling after the death of its charismatic leader, Sergio Marchionne, who never achieved his longstanding dream of merging with GM.
  • Volkswagen, which has also seen a senior executive arrested, has set aside $30 billion to cover costs associated with its Dieselgate scandal.

What to watch: The future of car-making might be grim, but stock market investors are excited about self-driving cars and mobility as a service.

  • That market logic is putting pressure on carmakers to pour billions into R&D. It's also driving strategic investments in everything from AI to electric scooters.
  • The result: A major secular employment shift away from unionized factory workers and Detroit middle-management lifers. Expect the United Auto Workers, still GM's largest shareholder with a $3.6 billion stake in the company, to remain extremely unhappy for the foreseeable future.

Go deeper:

Go deeper

Updated 43 mins ago - World

HRW: Over 100 former Afghan security members dead or missing under Taliban rule

Members of the Taliban movement patrol Kabul's airport in September. Photo: Valery Sharifulin/TASS via Getty Images

The Taliban have "killed or forcibly disappeared" over 100 former members of Afghanistan's security forces since the group took power in August, a Human Rights Watch report published Tuesday found.

Why it matters: Former military members and officials from the ousted government, activists and other Taliban critics are facing peril amid executions driven by revenge — despite Taliban promises of an "amnesty" with no retributions, notes the New York Times, which first reported the news.

4 hours ago - World

Barbados becomes a republic, replacing U.K. queen with president

Combination images of Dame Sandra Mason, president of Barbados, and Britain's Prince Charles at her swearing-in ceremony in Bridgetown, Barbados, late Monday.

Barbados officially became a republic at midnight local time after Dame Sandra Mason was sworn in as the Caribbean nation's first president in a ceremony attended by the United Kingdom's Prince Charles.

Why it matters: Mason replaced Britain's Queen Elizabeth as head of state Tuesday — removing the country's final remaining colonial tie to the U.K. almost 400 years after the first British ships arrived in Barbados.

Right-wingers making McCarthy sweat for future Speaker post

House Minority Leader Kevin McCarthy stands with his Republican colleagues outside the House on Nov. 17. Photo: Stefani Reynolds/Bloomberg via Getty Images

Right-wing elements in the Republican Party are complicating House Minority Leader Kevin McCarthy's attempts to become the next speaker of the House should the GOP take back the majority in 2022.

Why it matters: While McCarthy has worked carefully to build trust among the conservatives who tanked his chances at clinching the speakership in 2015, they're still circling ahead of the next Speaker vote in January 2023.

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