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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.

2018 Buick Regal GS First Drive Review | More power, style and doors

During our test-drive of the 2018 Regal GS, Buick took us to Atlanta Motorsports Park and hired stunt drivers to teach us mild-mannered journalists how to do a J-turn. It's an emergency maneuver, also known as a Rockford, in which the car reverses at full speed, spins 180 degrees and takes off in the exact opposite direction from where it was headed. It symbolized perfectly Buick's hopes for the Regal GS, its most ambitious attempt yet at a bona fide American sports sedan. Buick is trying to shake off decades of stigma as a maker of grandpa-spec wafters. Since 2008, it has been rebadging the Opel Insignia, developed by GM's German subsidiary and built in Russelsheim, as the Regal. In 2012, Buick revived the Regal GS badge, providing power from a 2.0-liter turbo four, initially at 270 horsepower but then detuned to 259 hp in 2014 as AWD was introduced. Buick had high hopes of challenging the luxury greats, and while the previous Regal GS received good reviews as a genuine sports sedan, it never really caught on in the marketplace. Buick took a risk by redefining the brand, but ultimately, it wasn't quite successful enough to be uttered in the same breath as BMW, Mercedes-Benz and Lexus. The 2018 Regal GS doubles down on that lofty goal with a better-fleshed-out version of the outgoing car. It returns with improved styling and even more power, courtesy of a naturally aspirated 3.6-liter V6 generating 310 horsepower and 282 lb-ft of torque. In other words, the new GS is up 40 horses, but down 13 lb-ft with an engine that comes straight from the GM parts bin. Within GM, it is known as the "High Feature" engine, used in everything from Cadillacs to V6 Camaros to the GMC Acadia. Autoblog has knocked this engine on refinement but generally praised its power, so it's a mixed bag. On the Regal GS, though, the drivetrain exhibited a marked improvement on the refinement front. Buick spokesperson Stuart Fowle attributed this to the new nine-speed automatic it's mated to, a quick and smooth-shifting transmission well-programmed to keep the engine at optimal revs. The result deviates quite a bit from the Opel Insignia, which maxes out with a turbocharged 2.0-liter inline-four good for 197 horses and 300 lb-ft. With turbo 2.0-liter fours now the de facto entry-level engine for most luxury carmakers, having the 3.6-liter V6 makes the 2018 Regal GS more distinctive, a bit more American and less of a European copy-paste job than its predecessor.

Mysterious white powder discovered at GM Orion Assembly

Workers at General Motors Orion Assembly Plant in Orion Township, MI uncovered a mysterious white powder in two different parts of the factory earlier this week, raising concerns about worker safety. "We can confirm that an unknown substance (white powder) was found on the floor outside of Gate 6 at Orion Assembly on Monday, August 29. On Tuesday, August 30, we had a second report of a bottle containing a similar substance found inside the plant," GM spokesperson Dayna Hart told The Oakland Press via email. GM stressed that incident didn't disrupt operations at the plant, and that the company was taking steps to ensure the safety of the sprawling factory's workers. That did include, an anonymous worker told The Oakland Press, closing off parts of the factory for two full days, as drug-sniffing dogs and crews in haz-mat suits descended on the area. "A sample of the substance has been sent to a laboratory for identification and results are expected later this week," Hart said. "All findings and actions have been shared with our employees." Orion Assembly currently builds the Chevrolet Sonic and Buick Verano, and will eventually be responsible for production of the new, all-electric Chevy Bolt early next year. Related Video: