1987 Buick Grand National 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.

Buick Avenir will be made...as a trim level instead of a car

Almost two years after Buick showed the gorgeous Avenir concept, the company announced the Avenir name will reach production. Specifically, it will be a top-tier trim level for 2018 model year Buicks. It's taking a page from GMC's Denali, Lincoln's Black Label, and, well, plenty of examples of extra-fancy sauce. This is disappointing news for fans of the concept, but they can take solace in the fact that the Avenir's good looks are starting to rub off on production Buicks, such as the new LaCrosse. For those interested in what this new Avenir trim will bring to the table, it's a similar formula to what many other auto brands are doing. Buick specifically compares Avenir with the Denali trim for GMC. Models with the trim will get a special 3D mesh grille inspired by the Avista concept, large wheels and unique trim finishes outside. Inside, Avenir models will receive a nicer interior, which Buick generically described as having "unique seat details" and "modern trim materials." Cars equipped with the package will also get a smattering of Avenir badges. Avenir looks like a win-win: interested buyers get some extra cachet and bragging rights and Buick gets to load high-profit options on it cars and SUVs. Buick's inspiration for the Avenir trim is a bit strange, though. The company says it is "inspired by Buick's evolving customer base," which includes women and owners of competing products. Apparently both groups are buying Buicks in greater numbers, and the company also says that many of their customers opt for the most expensive trims. While it seems straightforward to tailor a package for luxury-seeking buyers, we're not sure what would make a package specifically appeal to women and people with competitors' vehicles. That being said, Buick isn't as patronizing as Cosmopolitan was with its car. In fact, quite the opposite. With Avenir, Buick is cashing in on new customers that willing to pay for luxury plain and simple, without any pandering. Related Video: Auto News Buick Luxury denali buick avenir

Repo man pays off elderly couple's car just in time for Thanksgiving

Repo men get bad raps for a good reason; no one likes having their car taken away. At least one guy in the repossession game proved folks in his profession aren't all bad when he helped an elderly couple hold on to their wheels right before Thanksgiving. According to the Belleville News-Democrat, unexpected bills and the rising cost of prescription medications pushed Stanford and Patty Kipping's fixed income to the breaking point. Unable to keep up with the $95 dollar a month payment on their 1998 Buick, they fell into arrears and the bank sent a repo man out to their home in Red Bud, Illinois to reclaim the car. Jim Ford, co-owner of Illini Recovery Inc., hooked up the old Buick and dragged it away, but later that night his conscience caught up with him. "When I got home that night, I said to myself, 'They are a real nice elderly couple. I gotta do something. I can't just take their car,'" Ford told the News-Democrat. Ford did do something, something surprisingly humane. He set up a GoFundMe and, within just a few short hours, he raised more than $3,500 dollars. This was enough money to pay off the Kipping's loan with a little left over for some maintenance. Ford and a friend then hooked the car back up and towed it back to the Kipping's home. Ford presented the couple with their trusty Buick, and threw in a thousand dollars in an envelope and a frozen turkey for Thanksgiving. "It was a miracle come true," Patty told the paper. "We didn't know what we were going to do." "I got up this morning and I looked up at the sun and I said, 'I hope we get our car back,'" added Stanford. "It's just unbelievable."Related Video: News Source: Belleville News-Democrat Auto News Weird Car News Buick repossession repo man