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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.

Junkyard Gem: 1983 Buick LeSabre Estate Station Wagon, Rocky Mountain High Edition

If you live in Colorado and want an affordable chariot to haul you and your snowboarding droogs to the slopes, you could get one of the obvious cheapskate choices, e.g., a Tercel 4WD, a Corolla All-Trac, or an 80s 4WD Subaru wagon. However, if you want to channel the spiritual forefathers of early-1980s punk rock (and you do), you'll need a big, battered, Detroit bomb. This '83 LeSabre, spotted in a Denver self-service wrecking yard, is such a car. As you can see in 1984's Suburbia, you're pretty much halfway to being a member of The Vandals when you drive a couple of tons of once-luxurious Detroit Iron. 1983 was the final year of the Malaise Era, and so you didn't get much power from the V8s back then. The standard engine for the LeSabre that year was an Olds 307 generating a mere 140 horsepower. The only way to get a burnout out of this setup was to pour a case of Lucky Lager over the right rear tire, then neutral-drop the transmission while floating the valves. Chrysler and Nissan dominated the Whorehouse Red car interiors during the 1980s, but GM made a respectable showing with this scratchy, velour-influenced stuff. When you know you're a car's last owner, nothing holds you back from decorating it to suit your tastes. Ron Paul, the Snowboarders + Skiers For Christ, and many other icons of Buick-driving snow enthusiasts are represented upon the ample flanks of this wagon. How many miles are on it? With a five-digit odometer, there's no telling. The Colorado sun is rough on interiors, but this car may have spent its first couple of decades parking in a garage, or maybe it came from cloudy Oregon. Advertising for this generation of LeSabre emphasized fuel economy, which may have been a less-than-convincing approach. Related Video:

Junkyard Gem: Heavily personalized 1997 Buick Skylark Custom Sedan

Normally I wouldn't be much interested in a third-generation GM N-Body (a family that includes the Chevy Malibu and Olds Achieva) spotted in the junkyard, though a case could be made for such a vehicle's historical significance. This '97 Skylark, however, arrived in a Northern California self-service wrecking yard well-plastered with stickers, reflectors, and other personalizing touches, making it an interesting document of its time and place. It appears that both of the original white fenders got mashed and then replaced with blue ones, almost certainly obtained cheaply at a yard like this one. If you're not going to paint your new fenders to match the car, then you're already well down the slippery slope to making the car a giant mobile canvas to display your interests. A 20-year-old GM N-Body, regardless of how nice it was when new, isn't worth much, and you could stretch a line of these cars from Lansing to Lahore with all the used-up Ns sitting in American wrecking-yard inventory right now. Perhaps it was the grandchild of the car's original owner who indulged in White Widow cannabis and listened to Siouxsie & the Banshees. The odds against finding the original window sticker in a car like this are mighty long, but here it is. Sold new at Putnam Buick in Burlingame. It appears that this car spent most of its final decade in or near Mill Valley. Mill Valley is a mere 30 miles from Burlingame, or about three hours of Buick driving (you have to go past SFO, through San Francisco, and across the Golden Gate Bridge, a journey featuring apocalyptically terrible traffic at just about any time). Drive east across the Richmond-San Rafael Bridge and you'll get to this Skylark's final parking space, about 20 miles from Mill Valley. This car lived its whole life near the shores of San Francisco Bay, and it will die there. Feathers and a political-party charm adorn the headliner. This car's final owner had a practical side, as we can see from the many reflectors and lengths of safety tape. Just the thing for avoiding a T-bone wreck in the dead of night! "Essentially, Skylark embodies all of the features customers expect from a Buick, in a smaller package, with a very attractive MSRP."