Buick Century Limited on 2040-cars

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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 struggling to keep up with Encore demand

Buick is having a hard time keeping up with demand for its all-new Encore mini-CUV, according to a report from Automotive News. The stylish, lifted five-door went on sale in January, but dealers have reported that supplies have dwindled after the initial high demand, taking the proverbial "wind out of the sails."
General Motors admits that it underestimated demand for the diminutive Buick, which is built in Korea and sold as the Opel Mokka in Europe, where it's also seen success. Buick spokesperson Nick Richards told AN, "We increased production, so there have been a lot more landing within the last month."
Buick has done a booming business, though, even with its limited supply of Encores. With over 12,000 units sold in the first half of 2013, the small CUV is on pace to annihilate industry analysts' estimates, which predicted no more than 18,500 units in 2013. We're not entirely surprised. When we first drove the Encore late last year, Autoblog professed that we had no idea how sales would turn out, as the Encore wasn't really entering into an established segment. Even so, wefound a surprising amount to like in the Encore, enough that we "wouldn't bet against it" being a major success.

New Buick Envision model spotted in China, expected here this year

At GM Capital Markets Day in February, GM North America president Barry Engle said the U.S. market can expect "updated models of Chevrolet Equinox and Traverse, Buick Envision and Enclave, as well as GMC Terrain." We've seen the Equinox and Traverse, and although we weren't aware, we've seen the Envision. Buick showed an EV crossover concept in 2018 called the Enspire, and it was thought to preview an eventual production model called the Enspire that's been spotted in various places testing under heavy camouflage in the U.S. GM, in fact, applied to trademark the Enspire name twice in the U.S. The model's final production form got an early reveal in China thanks to the Ministry of Industry and Information Technology, and according to GM Authority, a branding redirection has led to the crossover being called the Envision. Assuming this is the model that comes to the U.S., it will share dealer space with the current Envision imported from China. Motor1 writes that Chinese site Auto Home alleges the name Envision S will distinguish the new product, and the tailgate in the low-res photo plausibly shows an S after the model name. That doesn't mean it would get the S suffix here, though. It's not clear if the coming crossover grows in size compared to the standard Envision the way the Encore GX expanded a touch over the Encore. The marquee difference will be that the new Envision is more luxurious in looks, equipment, and features. There are few details, but it's thought the Envision S sits on the same E2 platform as the Cadillac XT4, and will use the same 2.0-liter turbocharged four-cylinder in the Cadillac paired with the automaker's nine-speed automatic. In the XT4, that mill produces 237 horsepower and 258 pound-feet of torque, but across all its applications in the GM stable it makes anywhere from 230 to 237 hp.    What we can see is that the new CUV takes the Envision name in a more dynamic direction, starting with a trim upper front fascia that puts narrow headlights astride a wide grille clearly derived from the concept, the lower front fascia with chrome-lined outer intakes that recall the Aston Martin DBX. A diffuser-looking silver trim piece in front is mirrored in back. A sloping roof helps create the slim profile, leading to a trim backlight, thin taillights, and strong horizontals on the bumper that emphasize width.