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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's Velite 5 is a rebadged Chevy Volt for China

There's nary a mention of the famous Chevy Bowtie badge in Buick's press release for its new Velite 5. No shoutouts to the extended-range Volt, with which the Chinese-market Velite clearly borrows its hybrid gasoline/electric technology. But that's okay; to borrow an adage, if it looks like a duck, swims like a duck, and quacks like a duck, it's probably a duck. And, as you can see from the image above, the Buick Velite 5 is a duck Volt with a Tri-Shield badge. The Velite 5's 1.5-liter engine and lithium ion battery pack provide up to 466 miles of range, with the first 62 miles or so coming on battery power alone. That's more range than Chevy quotes for the Volt, so we're not sure what methodology Buick is using to calculate mileage. Still, even if it's more like the Volt's estimated range of 53 real-world miles, it would be enough for many Chinese drivers to avoid the gas station altogether. Buick showed off a Velite Concept late last year that doesn't appear to share much at all with this new Volt-based production model. But since the brand is promising more plug-ins and EVs in the coming years, we wouldn't be surprised to see further models carrying the Velite moniker, perhaps one based on the all-electric Chevy Bolt EV. Related Video:

2019 Buick Envision starts just under $33,000

Buick has announced that prices for its new 2019 Envision will start at $33,985 (including destination), positioning the refreshed compact SUV right between its best-selling Encore entry-level crossover and more upmarket Enclave and taking aim at competitors including the Lincoln MKC and Acura RDX. The Envision will be offered in five trim levels — Envision, Preferred, Essence, Premium and Premium II, which starts at $45,590 — when the crossover goes on sale this spring. Prices exclude tax, title, license, dealer fees and optional equipment. We told you recently about the optional new nine-speed Hydra-Matic 9T50 automatic transmission and 2.0-liter turbocharged four-cylinder on the top two trim levels. The upgraded engine offers 252 horsepower and 295 pound-feet of torque. The standard setup remains the 197-hp 2.5-liter inline four-cylinder engine making 147 lb-ft of torque and mated to a six-speed automatic, offered in front- or all-wheel drive. The crossover gets a new winged Buick emblem on the grille, new headlamps and newly sculpted front and rear facias, plus optional 19-inch wheels. It also gets a Buick-first tire-fill alert that signals when a tire has reached the recommended pressure level. Standard technology features include an in-vehicle air ionizer to eliminate odors, a switch to turn off its fuel-saving engine stop feature, rear-park assist, an 8-inch diagonal infotainment system and 4G LTE WiFi hotspot. By dropping the starting MSRP by nearly $1,000, GM says the Envision is now better positioned against its top-selling Encore (starting MSRP $22,990), for which nearly 60 percent of buyers come from outside the automaker's stable of brands. Related Video: