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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 Enspire spied for the first time, loses concept's electric powertrain

About a year ago, Buick showed a high-performance electric crossover with wide, aggressive, curvy lines that was called the Buick Enspire. Now we have our first look at the production version. While it does seem to be styled like the crossover, it also seems to have lost its electric powertrain in favor of internal combustion. At the front of the crossover, we can clearly see it has the skinny, scowling headlights of the concept sitting high on the front fascia and flush with the hood. The main grille looks like it may be smaller, but it could also just be that the actual open section of the grille doesn't fill up the grille area of the fascia. In profile, the crossover has an attractive long nose, low roof and rising belt line. The rear shows the most change, as the rear pillars are much thicker, and the taillights don't appear to span the full width of the crossover. It's in the rear that we can also see the evidence that the Buick Enspire will actually be gasoline powered. Looking very closely under the rear bumper cover, we can see two exhaust tips turned to face the ground. Based on the size of the crossover, and the fact a Cadillac XT4 was being driven along with the prototype, the Enspire is probably using the XT4's platform, as well as its mechanical bits. That means it probably has a turbocharged 2.0-liter four-cylinder making 237 horsepower and 258 pound-feet of torque. Power will also probably go through a nine-speed automatic to either the front wheels or all four. This prototype looks to be pretty far along, so we'll probably see the production version in about a year. Considering the Enspire's size and likely powertrain, it may even replace the similar Buick Envision. And since the Envision is Buick's worst selling crossover (unless you count the Regal TourX as one), it would be ripe for replacement.

Neil Young's 1953 Buick Roadmaster Skylark brings $400,000 at auction

Singer-songwriter Neil Young's extensive collection of model trains have fetched nearly $300,000 at auction, along with classic cars and musical equipment owned by the 72-year-old folk-rock icon. Young, a model train enthusiast for decades, offered more than 230 pieces at Julien's Auctions in Los Angeles from his collection of Lionel trains, including a custom-painted Commodore Vanderbilt 4-6-4 locomotive that sold for $10,000. Several cars that Young owns were also sold. A 1953 Buick code 76X Roadmaster Skylark convertible with a steering wheel hub that says, "Customized for Neil Young," went for $400,000, the auction house said on Saturday. Young, best known for his Woodstock-era songs as well as his work with the bands Buffalo Springfield and Crosby, Stills, Nash & Young has said the vast model train layouts at his California ranch helped him connect with his son Ben, who has cerebral palsy. Other items auctioned off on Saturday included some of Young's guitars, amplifiers and microphones. A portion of the proceeds will benefit the Bridge School in California, which Young's ex-wife Pegi Young co-founded in 1986 for children with severe speech and physical impairments.Reporting by Joseph AxRelated Video: