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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.

The new Buick Regal looks like a Mazda, and we're totally cool with that

Yes, this undisguised Opel Insignia, which will be brought here as the next Buick Regal, looks a lot like a Mazda. You can see it in the grille and headlights, especially – in fact, if you look at one of the photos with tape blocking out the badge in the middle of the winged grille, you might think this is a new Mazda6. The thing is, Mazdas look pretty darn good, so no one's complaining. And when you look at the rest of the car, there's a fair amount of originality going on. Aside from the GM-generic taillights (they look like they could fit on a Chevy, right?) the lines and details are all pretty fresh, and there are some design elements pulled from Buick's gorgeous Avista concept. A sweeping roofline leads to some healthy shoulders at the back, creating a coupe-ish profile with a very abbreviated rear deck. This appears to be a hatchback model and not the four-door sedan, but the general look should carry over. This is definitely a big improvement over the somewhat bulbous current-generation Regal, which also started life out as an Insignia. The car shown here is the Insignia OPC model, with Brembo brakes, big wheels, side skirts, and a front end with big (likely fake) intakes. It will most likely translate to a Regal GS for our market, as is the case with the current OPC and GS. The new Regal/Insignia is expected to use the same platform as the new Buick LaCrosse, which is also shared by the Chevy Malibu and Impala. They should once again be available with front- or all-wheel drive and a choice of turbocharged four-cylinder engines. Rumor has the Opel versions debuting at the Geneva show March, and the Buick would likely follow, possibly in New York in April. View 13 Photos And then there's the wagon. All signs point to Buick finally bringing the most practical Insignia to our market as a Regal. We got wind of a focus group testing the idea, Buick has trademarked the name Regal Tour X. That version would likely go up against the Audi Allroad in the classy, slightly lifted all-wheel-drive wagon category, basically acting as an almost-crossover for people who want a wagon but won't admit it to themselves. The Insignia wagon caught here is also an OPC, and we think it looks even more handsome than the hatch-sedan shown above. The trim piece stretching from the base of the A-pillar all the way up and back down to the tail is a nice touch in profile view, although we're not so sure about how it terminates abruptly at the taillight.

GM re-recalls 11k SUVs

General Motors is recalling a bunch of previously recalled SUVs because, well, they still aren't quite fixed. The latest repairs are necessary on 10,974 SUVs in North America, including 9,932 in only the US. Affected models include the 2006-2007 Buick Rainier, Chevrolet Trailblazer, and GMC Envoy; plus the 2006 Trailblazer EXT and Envoy XL. While not listed by NHTSA, a statement by GM to Autoblog says the 2006-2007 Saab 9-7X and Isuzu Ascender are also affected. In these SUVs, it's possible that liquid could get into the driver's door master power window switch module and cause a short circuit. This could potentially lead to a fire, and owners are urged to park the vehicles outside until repaired. GM has been trying to fix this issue for years. It started as an investigation into fires, and that led to a recall for about 250,000 vehicles in cold-weather states. A nationwide campaign came in 2013 for 193,000 of them in the US. Last year, the automaker decided to replace the whole module as a repair. However in a recent investigation of these recalls, GM discovered that this latest group of SUVs never received the new part. According to documents submitted to NHTSA (as a PDF), "Some dealers incorrectly used the labor code associated with module replacement when, instead of replacing the module, they only added a protective coating to the module." To fix things this time, the models finally get the correct component. Related Video: GM Statement General Motors is recalling 9,932 older midsize SUVs in the U.S. because they were mistakenly excluded from an earlier recall. Certain 2006 Chevrolet TrailBlazer EXT and GMC Envoy XL, and 2006-2007 TrailBlazer, Envoy, Buick Rainier, Saab 9-7X and Isuzu Ascender vehicles may continue to have a condition in which the printed circuit board inside the driver's door may corrode and short if exposed to certain fluids such as melted snow containing road salt. GM is aware of four fires but no crashes, injuries or fatalities associated with the expanded recall. The total number of vehicles being recalled, including Canada, Mexico and exports is 10.974. Customers are urged to park these vehicles outside until repairs have been made. GM reported this recall to the NHTSA on September 23.