1998 Buick 4dr Sdn Custom 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.

China-market Buick Electra E5 meets the world

We now know the Buick Envista crossover is on the way to the U.S. market after its recent debut in China. The Chinese Ministry of Industry and Information Technology has previewed another Buick crossover that will eventually get here, the release spotted by Car News China. The battery-electric Electra E5 was outed as part of the ministry process of opening up a public comment for new market entries. This is the Buick-branded Ultium-based EV that inaugurates a new electric era for GM brands over there, the E5 landing in the middle of the consecutive E1 to E9 trademarks Buick reserved a few years ago. The five-seat crossover's dimensions have been given as 192.6 inches long, 75 inches wide, and 66.2 inches tall, on a wheelbase 116.3 inches long. That size puts it on the same wheelbase as the coming 2024 Chevrolet Equinox EV, with a length about two inches longer. The base wheels measure 18 inches, the options list offers 20-inch units. The battery pack is sourced from a joint venture between CATL and SAIC, the latter being GM's joint venture partner in China. The automaker said it's "tailored for China" but we don't know what that means, nor do we know the capacity. Thanks to the MIIT information, we do know the E5 weighs 5,666 pounds and in this initial form will be powered by one 241-horsepower motor that can achieve a top speed to 112 miles per hour.  Spy photographers caught an Electra SUV clad in camo doing the rounds in Michigan earlier this month with all the same design cues seen on the Chinese model — narrow headlights and taillights, three-piece high brake light on the hatch spoiler, and the same wheels. Although we could be wrong, we'd bet a fair bit of money our Electra will come with more than 241 horsepower, though. Even our compact Buick Envision gets 228 hp, and it weighs almost 2,000 pounds less than the China-market Electra E5.   The same over there as here, the E5 represents Buick's first proper move toward the all-electric lineup scheduled to be completed by 2030. In China, it will mean the sunset of current EV offerings like the Buick Velite 6 MAV wagon-like vehicle, and the Chevy-Bolt-based Velite 7. Car News China said neither sell well, calling the Velite 6 "a bit of an oddball," and the 7 a little small for the Chinese market. Younger, tech-happy buyers will be lured with the first strokes of SAIC's Smart Cockpit and GM's Super Cruise. Deliveries should commence at the beginning of next year in China, the E5's arrival in the U.S.

2013 Buick Encore

City, Slicker
We admit it. We have no earthly idea how this whole thing is going to shake out.
Typically, after driving a new car or truck, we come away prepared to hazard a guess as to whether said model has a good chance of being a sales success. We've amassed enough time watching the industry, scrutinizing the competitors, and so on, to make a reasonably educated bet. Yet here we are, days removed from driving the new 2013 Buick Encore, and we still have no bloody idea.