1972 Buick Skylark 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.

GM will recall more than 3.3 million vehicles in China for suspension defect

BEIJING (Reuters) - General Motors' joint venture in China, Shanghai GM, will recall more than 3.3 million Buick, Chevrolet and Cadillac vehicles stating Oct. 20 because of a defect with the suspension system, China's market regulator said on Saturday. GM Shanghai said in a text message to Reuters that the suspension arm may be deformed under extreme operating conditions, but there are no known casualties related to the issue. The recall includes cars produced between 2013 and 2018, the State Administration for Market Regulation said in a statement. GM will contact those affected and repair the vehicles free of charge, it said. (Reporting by Josephine Mason and Hallie Gu; additional reporting by Yilei Sun; Editing by Shri Navaratnam and Michael Perry)Related Video: Image Credit: Qilai Shen/Bloomberg via Getty Recalls Buick Cadillac Chevrolet Safety

This 1988 Buick LeSabre Estate Wagon looks like a boxy, wood-sided bargain

The growing interest in 1980s cars has meant that General Motors' full-size B-body station wagons of the era are now attracting the interest of collectors as well as iconoclasts seeking an SUV alternative. This 1988 Buick LeSabre Estate Wagon for sale right now on eBay Motors, looks to be a tempting example of the genre. It has covered just 72,000 miles and is described as a "rust-free southern car." The A/C is said to be cold, and it's equipped with power windows, a split-bench front seat and a rear-facing third seat. Whereas the Electra was the wagon for the finest estates, the LeSabre presumably was for those that were one rung down, so it has a slightly more downmarket maroon cloth interior where the Electra would have velour. Yet this LeSabre Estate Wagon is still slathered in a full complement of woodgrain siding, and this car sports a factory set of wire wheel covers. We're told the 5.0-liter V8 sound great, while the paint is said to be "a little tired" and one headlight looks like it needs to be replaced. The "Buy It Now" price is $8,500, and the seller is also inviting offers. Plus, 1% of the sales price benefits St. Jude's Children's Research Hospital, so there's a feel-good factor. For comparison, this wagon's Oldsmobile twin currently being auctioned on Bring a Trailer already has been bid past $8,900 for four days still to go in the auction. This '83 Custom Cruiser has 74,000 miles and looks maybe a little spiffier, but not a lot more so. The seller of this Oldsmobile includes a video in his listing, and in it he appears to be not wearing pants. Sometimes it's all about presentation. Related Video: