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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.

Texas sues GM, saying it tricked customers into sharing driving data sold to insurers

Texas filed a lawsuit Tuesday against GM over years of alleged abuse of customers' data and trust. New car owners were presented with a "confusing and highly misleading" process that was implied to be for their safety, but "was no more than a deceptively designed sales flow" that surrendered their data for GM to sell. The suit contends that at no point was selling driving data ever even suggested as a possibility, putting GM in violation of the state's consumer protection laws. Texas Attorney General Ken Paxton is seeking a jury trial and at least $10,000 per offense (every GM car sold in the state since 2015) and a hefty add-on of $250,000 in cases where the victim was over 65. Texas seems to be flying high after a recent $1.4 billion settlement from Meta over other privacy concerns. This may well be a way to solve any pending budgetary issues in the Lone Star State.

2017 Buick Encore freshens up for New York debut

Buick has rolled in to the New York Auto Show this year with a revised version of the Encore, bringing with it a series of revisions to what's billed as "America's most popular small SUV." Most obvious is the new front end that adopts the brand's latest design language with a fresh grille and headlamps – full LEDs on top-spec models. The taillights are also new, the exhaust tips are now chromed, the door mirrors color-keyed to the bodywork, and of course it all rides on a new set of wheels. The updates continue inside, where you'll find new trim, new gauges, and an eight-inch color touchscreen display to run the IntelliLink system that now supports Apple CarPlay and Android Auto as well as OnStar 4G LTE with on-board wifi. Buyers will be able to choose between five trim levels and between front- or all-wheel drive. There are three new exterior paint choices as well. The Encore is based closely on the European-market Opel Mokka, which was similarly revealed in updated form at the Geneva Motor Show just last month. In Buick guise, the Encore has only been on the market now for three years, but already stands as the brand's top seller. Last year it alone accounted for nearly one in every three vehicles Buick sold, and has risen 34 percent so far this year as well. Subtle though they may be, these updates ought to keep the Encore at the top of its game for another few years to come. View 5 Photos Related Video: 2017 Buick Encore Gets Latest Tech, Sculpted Design New LED headlights, Apple CarPlay, Android Auto for Buick's best-seller 2016-03-22 NEW YORK – Buick today introduced the new 2017 Encore, strengthening the appeal of America's most popular small SUV with more refined styling and new connectivity technology – including available Apple CarPlay and Android Auto compatibility. A new front-end appearance and a new premium interior highlight the visual refinements, while Apple CarPlay and Android Auto are supported by a next-generation IntelliLink system featuring an 8-inch-diagonal color touch screen. Push-button start, keyless unlock via the exterior door handles and an 8-inch color touchscreen highlight the Encore's roster of new standard features. "The Buick Encore created the premium small SUV segment and remains the top choice for customers seeking premium features and dependability coupled with timeless design," said Duncan Aldred, vice president of Buick Sales, Service and Marketing.