2004 Buick Lesabre Custom Sedan 4-door 3.8l 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.

Junkyard Gem: 1978 Buick Electra 225

The Buick Electra was a big, plush, dignified land yacht for the 1959 through 1976 model years, but certain events in the middle 1970s, coupled with increasing sales of imported cars, convinced The General that a weight-loss program would help Electra sales. For the 1977 model year, the big Buick became 11 inches shorter and shed close to 900 pounds. Sales took off. Most of these cars are gone now, but I was able to find this faded '78 in a San Francisco Bay Area self-service yard a few weeks back. Just to be clear, the Buick Electra in the iconic Sir Mix-a-Lot video, My Hooptie, is a 1969 model. That car was much bigger and more powerful than today's Junkyard Gem. This car has the optional Oldsmobile 403-cubic-inch V8 engine under the hood, which was good for 185 horsepower and 320 pound-feet of torque. This is the same type of engine that was badged as a 6.6-liter plant in the Pontiac Firebird Trans Am of Smokey and the Bandit fame, and GM's mix-and-match games with engines from different divisions went on to cause great disgruntlement among buyers who wanted a Buick engine in a Buick. The silver-faced gauges were pretty cool-looking by late-1970s standards. The interior is standard-issue Detroit luxury car for the era: much vinyl, many molded-in fake stitches, plenty of not-trying-very-hard-to-look-real "wood." These cars rode very comfortably and looked sharp, so who cared if the interiors were plasticky? According to Glenn Ford, the '78 Electra carried on an ancient tradition of Buick luxury. Related Video:

Opel to be shuttered in China, but will restart Buick production in Germany

Opel, General Motors' troubled German brand continues its quest to reinvent itself and find solid profitability. In the course of that metamorphosis, the company has a bit of good news/bad news today. The good news is, it will once again begin screwing together Buick models for the American market. The bad news, though, is that it's being shut down in yet another country, China.
Let's start with the good news. The last vehicle Opel's Ruesselsheim factory built for the North American market was the early run of the then-new Regal, which is based heavily on the Opel Insignia. Production ran for just over two years, from 2009 to 2011, before moving production to Oshawa, Ontario.
Now, thanks to a 245-million-euro investment (just over $336 million), Opel will kick off production of a unspecified model for the US in the "second half of the decade," according to Automotive News. According to Opel, the new model will be announced before the end of 2014. You can begin your speculation about this new model down in Comments (we're wagering it'll be the Cascada convertible, sold here under the Buick umbrella).