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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.

Audi tops Consumer Reports' brand rankings while Tesla leads domestics at eighth

Tesla supplanted General Motors' Buick division as the top-ranked US automaker in Consumer Reports annual brand rankings, though the electric-vehicle maker finished eighth among global automakers. Buick had finished atop CR's domestic car-brand list for three years before Tesla leapfrogged it. Scores were calculated from a combination of performance, owner satisfaction, and reliability. CR noted that Buick scored big on reliability but not so high on performance, while Tesla appeared to present the opposite case. Volkswagen's Audi division repeated as the best overall brand for the second straight year, beating out VW's Porsche unit, BMW, Toyota's Lexus division, and Subaru. Kia and Mazda followed those brands, while Honda finished ninth, between Tesla and Buick. Consumer Reports took results from 31 brands. Reliability issues related to the Toyota Tacoma helped drop that Japanese automaker out of the top 10. Take a look at CR's results for its Annual Brand Report Card here. That Tesla, Audi, and Porsche placed so high is topical, given some of the issues plaguing those automakers. Audi, Porsche, and their parent VW have been coping with the effects of the diesel-emissions scandal that broke back in 2015. The scandal has cost Europe's largest automaker billions of dollars, and forced VW to put a stop-sale on diesel-powered cars in the US in late 2015. And while the Tesla Model S improved from the "worse-than-average" label CR gave it in its 2015 Annual Auto Reliability Survey, the problematic falcon-wing doors on the Tesla Model X SUV pulled that model's reliability scores lower last year. Additionally, the Model X's climate-control system and door locks have also caused issues. Toyota and Lexus finished atop CR's reliability rankings last year. Related Video:

Potential Buick Regal Wagon Spied | Autoblog Minute

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. Buick Opel Wagon Autoblog Minute Videos Original Video autos station wagon buick regal wagon regal wagon