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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.

2018 Buick Regal TourX First Drive Review | Pop the champagne, it's another wagon!

As a newborn member of an endangered species, we should probably pop open the Dom to fete the arrival of the 2018 Buick Regal TourX. It's a wagon, after all, and if there's anything we automotive writers have been clamoring for is more wagons. "Forget those SUVs," we've implored. "This wagon over here is better! Just as much cargo space, better to drive! And have you seen it in brown?" Well, it seems like our collective proselytizing is starting to pay off, or perhaps far more likely, consumer tastes are shifting a bit to appreciate the wagon. Sure, they need to be lifted a bit and sport plastic fender flares to add a wee bit of SUV-ish flavor, but who the hell cares? Beggars, choosers, etc. It's a wagon, and we should be happy it's here. And we are, the Regal TourX is a pretty good one that thankfully offers more than just its mere existence. It especially delivers on the space front, which is refreshing since most of today's wagons are not as cargo friendly as the collective "we" would like to admit. An Audi Q5 regrettably does have more cargo space than an Audi A4 Allroad. Yet, the TourX has more than both – considerably more in fact, coming in at a certifiably huge 73.5 cubic feet of maximum space. The difference is palpable between it and the 53.5-cubic-foot Allroad, which Buick considers the TourX's closest competitor. As the below video (somewhat) demonstrates, I was able to cram 12 Patagonia duffle bags into the Allroad, filling up most of the cabin. The same amount in the TourX left tons of residual space, you could still see out the back and loading it all in didn't require a degree in Advanced Tetris. There's also a far more useful amount of space with the back seat raised (32.7 vs. 24.2). That area is especially lengthy, and with the large rear quarter windows and reasonably square roofline, it should be a good choice for dog owners. There's no built-in dog net behind the back seat as you'll find in the Allroad and BMW 3 Series wagon (you'd have to go the aftermarket route), but your four-legged buddy should at least appreciate the lower liftover/jump-aboard height. Which brings us to the next wagon benefit: the lower roof height. According to Buick's marketing folks, people who buy off-roadish wagons like the Regal TourX are far more likely to actually live the outdoorsy active lifestyles the owners of SUVs usually only envision for themselves.

Submit your questions for Autoblog Podcast #310 LIVE!

We record Autoblog Podcast #310 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
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