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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.

Kia Telluride vs Buick Enclave Luggage Test | What actually fits behind that third row?

So, you want to buy a three-row crossover. Before plunking down $40,000 on a new sport utility vehicle, might we dissuade you with the prospect of minivan ownership? The Pacifica Hybrid, perhaps ... no? Fine. Good thing crossovers (especially the Telluride and comparable Palisade) are so nice to drive these days. We’ll assume you want the big three-row crossover, as you intend to seat folks in all three rows. Unfortunately, raising that third row reduces the luggage area from cavernous to crawl space. ItÂ’s rather devastating from a pure numbers perspective to the two models we have today. The 2019 Buick Enclave goes from a monstrous 58 cubic-feet with the second-row in place down to 23.6 cubic-feet (which along with the nearly identical 2020 Chevrolet Traverse is still best-in-class). Meanwhile, the 2020 Kia Telluride takes a similar hit, going from 46 cubic-feet down to 21 cubic-feet. Just looking at the numbers, it would seem that the EnclaveÂ’s big advantage all but disappears with the third row up, boasting just 2.6 cubic-feet of storage more than the Telluride. But as West Coast Editor James Riswick has discovered in the numerous luggage tests he's conducted, the numbers don't always tell the whole story. Let's see how the Enclave and Telluride compare when you actually put things inside.  Boom. The Enclave swallows all of the test luggage we have for it without any fuss. The distance between the back of the seats to the hatch opening is enough to fit our full-size suitcase horizontally, making it easy to stack every other bag around it. It even fits below the seatbacks, so the driver will have an uninhibited view out the rear of the vehicle.  At our Michigan HQ, our test luggage consists of the following pieces: 28-inch upright suitcase, 24-inch upright suitcase, 19-inch upright suitcase, two small tote bags and one backpack. ItÂ’s likely enough luggage for a quick weekend getaway with the family, given there are no strollers involved. As we attempted to pack it all into the Telluride, weÂ’re glad we didnÂ’t have anything else. The loss of 2.6 cubic-feet of space was indeed felt much harder than what it looks like on paper. We knew we were in trouble when the 28-inch suitcase didnÂ’t fit along the floor as it did so neatly in the Enclave. We were forced to stack it up next to the rear seats, which left it sitting rather tall back there. As a result, the other suitcases didnÂ’t have a neat or convenient place to go.

Buick tops in Consumer Reports' annual brand rankings

Buick is the first US-based automotive brand to crack the top 10 in Consumer Reports magazine's annual brand report cards. US automakers also placed three vehicles on the magazine's list of "top picks" for vehicles, the first time that's happened in 17 years. The rankings were unveiled Tuesday in the magazine's annual auto issue. Buick placed seventh in the brand rankings. But the brand rankings and top picks still were dominated by Japanese and German manufacturers, with Lexus, Mazda, Toyota, Audi and Subaru taking the top five brand spots. The magazine calculates each brand's overall score with a composite of its vehicles' road-test scores and reliability scores for each model in its annual survey of subscribers. It's the third year for the brand rankings. Porsche placed just ahead of Buick at number six, while Honda, Kia and BMW rounded out the top 10 brands. Mercedes-Benz, Acura and Infiniti all suffered precipitous declines in their rankings due to unreliable new models or poor road test scores. Mercedes fell out of the top 10 to 21st, while Acura dropped from number two to 11 with an unimpressive test of the new RLX sedan, the magazine said. In the model rankings, the top overall finisher was California-based Tesla's Model S electric car, for the second year in a row. The Model S, which cost the magazine $89,650, finished first due to its performance and technical innovations, the magazine said. Buick's Regal midsize car beat the BMW 328i as the top sports sedan, and the Chevrolet Impala was named the top large car. The model rankings show Consumer Reports' favorite among the 270 vehicles its team has recently tested. The rankings are closely watched in the auto industry, since shoppers consistently cite Consumer Reports as a main source of car-buying advice. Other top picks included the Subaru Impreza in the compact car category, Subaru Legacy in midsize cars, Toyota Prius as the best green car, Audi A6 luxury car, Subaru Forester small SUV, Toyota Highlander midsize SUV and the Honda Odyssey minivan. Japanese vehicles won six of 10 top pick categories, but that was the smallest number in the 19-year history of Consumer Reports top picks. "For years domestic automakers built lower-priced and lower-quality alternatives to imports, but those days are behind us," said Jake Fisher, the magazine's director of automotive testing. But other U.S.-based automakers still had problems.