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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.

MotorWeek remembers the nearly forgotten Buick Reatta

The Reatta was Buick's failed experiment to take on European competitors with its own two-seat luxury coupe and convertible. The model only lasted a few years, and US customers didn't see another droptop from the brand until the Cascada. The latest MotorWeek Retro Review takes a look back at the short-lived roadster and remembers it quite fondly. Host John Davis calls the 1990 Reatta droptop "one of the best looking convertibles ever." His sentiment seems a little hyperbolic, but the roadster is definitely an attractive machine by the standards of the time. The smooth front end and pop-up headlights are reminiscent of Japanese sports cars of era, and the profile with the top down is elegant. There are weaknesses, though. The manual roof mechanism appears cumbersome to operate, and the crude digital instruments, which simulate physical dials, make the cabin look too dated. Other than a complaint about over-boosted power steering, MotorWeek enjoys how the Reatta drives, too. Buick's roadster is largely forgotten today, but such glowing praise suggests it deserves to be better remembered. Check out this Retro Review to look back on this interesting experiment from the early '90s. Related Video:

NFL QB Cam Newton and supermodel Miranda Kerr star in Buick's Super Bowl ad

Buick's Super Bowl LI ad is another demonstration that its cars aren't frumpy anymore. The ad opens with parents watching their children play football, with one of the dads, we'll call him "Dad No. 1," shouting encouraging words to his son. In the background, a bright red Buick Cascada pulls up, and another dad, "Dad No. 2," points it out. Dad 1 doesn't believe him, and says, "If that's a Buick, then my kid's Cam Newton." All of sudden, his son transmogrifies into Carolina Panthers quarterback Cam Newton. As expected, he quickly dominates the game, with some amusing results. At the end, when a Buick Encore shows up, the referee inadvertently turns himself into supermodel Miranda Kerr, based on apparent disbelief over what constitutes a Buick. You can see all of the shenanigans in the video above. Plus, if you'd like to see what goes into making a Super Bowl commercial, Buick produced a short video with Newton and Kerr showing what happens behind the scenes. You can check it out below. Related Video: