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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.

2014 Buick Regal GS AWD

"This is just silly," I said as I laughed my way sideways around the icy track at Circuit ICAR, a racecourse, drag strip and kart track at the Montreal-Mirabel International Airport in Quebec. It wasn't the activity that had me cracking up, though. After all, winter driving experiences aren't uncommon in this business.
No, in this particular case, it was the car that had me chuckling. I wasn't in a mad hot hatch or a rally-derived rocket - I was in a Buick. The 2014 Regal GS, to be more precise. Somehow, despite its recent product renaissance (not to mention its distant - yet storied - history of performance models), I was having a hard time believing that this attractive, turbocharged, all-wheel-drive sedan sliding around the Great White North could possibly be wearing a Tri-Shield badge on its nose.
But it was, and slide about it did. While having access to a vehicle in this setting is fairly rare, what's rarer is the fact that I've had so much exposure to it. In Mr. Ewing's recent Volkswagen Golf R drive story, for instance, his ice capades were his first experience with the new model. In my case, though, I was lucky enough to first test the refreshed Regal GS for a week back in December before flying to Quebec to drive it on the snowy, icy, winding roads of Canada's most fiercely independent province and on the track at Mirabel.

2013 Buick Enclave

GM's Flagship Lambda Is (Still) A Smooth Operator
Consumers shopping for a domestic full-size crossover have heard all about GM's triplets. The Chevrolet Traverse, GMC Acadia and Buick Enclave are a very appealing and talented group of siblings. Entering their fifth year of production, albeit middle-age in the automotive industry, each is attractive, well-rounded and very capable on the paved dance floor. While all share nearly identical base DNA and the same basic running gear, subtle physical differences and unique personalities emerge between the trio when one digs a bit deeper.
The most polished of the threesome, without question, is the Enclave from Buick. Fresh off a mid-cycle update (as are its siblings), the flagship of the platform boasts a facelift, innovative new features and an upgraded demeanor for the new model year.