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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.

Buick prepares Super Bowl ad blitz to introduce Cascada

Super Bowl 50 will kick off on February 7, and Buick will use the big game's massive audience to get the word out about the new Cascada convertible. The the broadcast spot will be paired with a humorous digital campaign to advertise the convertible online. Buick hasn't released the 30-second Super Bowl commercial yet, but a teaser image shows that it stars New York Giants wide receiver Odell Beckham, Jr. and actress Emily Ratajkowski, known for roles in the films Gone Girl and Entourage. The ad is part of the "Experience the New Buick" campaign, which aims to position the brand to appeal to a younger demographic. The brand also has Ellie Kemper, the star of Netflix's hilarious Unbreakable Kimmy Schmidt and Erin on The Office, to sell the Cascada, Regal, Encore, and Enclave in a new online campaign. She plays an exaggerated version of herself and flirts with a guy who thinks Kemper owns Buick's new convertible. The spot tries to capitalize on the quirky charm of the actor's Kimmy Schmidt character. Buick will cut the longer clip (below) into vignettes for ads on sites like YouTube. Buick spokesperson Crystal Wilson told Autoblog that viewers' reactions to Kemper's commercial have been "totally positive" so far. First-Ever Buick Super Bowl Ad Features Odell Beckham Jr. and Emily Ratajkowski Latest "Experience the New Buick" ad spotlights new Cascada convertible 2016-01-26 DETROIT – Buick's first-ever Super Bowl ad will bring the brand's award-winning "Experience the New Buick" campaign to the biggest night in TV advertising. The campaign launched in 2014 and challenges consumers' false perceptions of the brand. The 30-second spot, scheduled to air during Super Bowl 50, features Buick's all-new Cascada luxury convertible and stars New York Giants wide receiver Odell Beckham Jr. and actress/model Emily Ratajkowski. The spot will be the first new Buick commercial to air in 2016, a year where the brand will launch three new products. The Cascada, Buick's first convertible in 25 years, arrives in dealerships in the coming weeks. It features an athletic and sculptural beauty that delivers a distinctive profile, whether the top is up or down. Along with the perception-shifting Cascada, Buick showrooms will soon feature a redesigned LaCrosse sedan and the new Envision, a compact crossover. Both go on sale this summer.

Ford Bronco, Bronco Sport, sub-Ranger pickup and GM EVs | Autoblog Podcast #618

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder and Road Test Editor Zac Palmer. Top of the list this week are the leaked photos of the 2021 Ford Bronco and Bronco Sport. Then they talk about the possibility of a small Ford pickup based on the Focus, as well as all the electric vehicles Snyder saw in person at GM's "EV Day." The editors have been driving the Ram Power Wagon and Hyundai Sonata, and Palmer took Autoblog's long-term Subaru Forester to New Orleans. Finally, they help a listener choose a small luxury crossover in this week's "Spend My Money" segment. then, just as they're about to wrap up the show, they learn that the 2020 New York Auto Show has been postponed due to the coronavirus outbreak. Good times. Autoblog Podcast #618 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown 2021 Ford Bronco and Bronco Sport leaked photos (and, just as we predicted, more photos) Ford shows its dealers the sub-Ranger pickup More details about everything we saw at GM's "EV Day" Driving the 2020 Ram 2500 Power Wagon Driving the 2020 Hyundai Sonata Driving our long-term 2019 Subaru Outback to New Orleans Spend My Money: Audi Q3, Volvo XC40 or Range Rover Evoque? 2020 New York International Auto Show postponed Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: