2012 Buick Enclave Convenience 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: 1982 Buick Riviera Diesel Coupe

After appending the Riviera name to various cars during the 1950s, Buick finally made the Riviera a model in its own right for the 1963 model year. Seven more generations of Buick's rakish personal luxury coupe followed over the next 36 years, but only one ever had an oil-burning engine available from the factory. Today's Junkyard Gem is one of those cars, a vividly purple '82 Riviera with 105 horses of Oldsmobile diesel power under its hood, found in a Denver-area self-service boneyard recently. Starting in the 1966 model year, the Riviera had been living on the same platform as the Cadillac Eldorado and Oldsmobile Toronado, both of which featured radical front-wheel-drive powertrains that used longitudinal V8s powering the front wheels via sturdy chains. However, despite the common platform, the Riviera alone kept the then-traditional front-engine/rear-drive setup, making it something of a corporate oddball for the next 12 years. Then General Motors decided to downsize the Eldorado/Toronado platform for the 1979 model year, and the Riviera got those cars' front-wheel-drive rig at the same time. Sales of the smaller Rivvy were strong, no doubt due in large part to certain geopolitical events that sent gas prices skyward and caused fuel rationing and gas lines. Back in the late 1970s and early 1980s, diesel fuel was much cheaper than gasoline in the United States. Mercedes-Benz and Peugeot had done reasonably well selling diesel-engined cars here during the 1970s, and so General Motors developed a diesel-burning version of the Oldsmobile 350-cubic-inch (5.7-liter) V8 engine. As was typical of naturally-aspirated automotive diesels of the time (every modern car's diesel engine is turbocharged), horsepower was miserable but torque was strong; the engine in this car was rated at 105 horses and 205 pound-feet. The 5.7 diesel first showed up in the Riviera for the 1981 model year. The base engine was a 4.1-liter version of the Buick V6, while the oil-burning Olds cost an extra $924 (about $3,206 in 2023 dollars). A comfortable and smooth-riding Riviera with the cheap fill-up price and long range of diesel sounded great, even if you had to line up with Freightliners and Peterbilts to get to a pump, but there were problems. Oh, so many problems! Oldsmobile's 350 V8 had been around since 1968 and it had proven to be both reliable and powerful.

Junkyard Gem: 1985 Buick Somerset Regal Limited

The Oldsmobile, Buick and Cadillac divisions of The General's mighty army got serious about their attempts to compete with futuristic and stylish German and Japanese coupes during the second half of the 1980s, with cars such as the Cadillac Allante, Oldsmobile Toronado Trofeo, and Buick Reatta. They featured edgy styling, wild digital dashes, and other interesting gadgetry. Before them, however, came the Buick Somerset. Built for the 1985 through 1987 model years, only the '85s were badged as Somerset Regals. Here's one of those ultra-rare cars, spotted in a San Francisco Bay Area self-service wrecking yard. This badging confused many Buick shoppers at the time, because the 1985 Regal was a "traditional" midsize rear-wheel-drive car, based on the increasingly antiquated G-Body platform, and the Somerset Regal was an N-Body front-wheel-drive compact. For 1985 and 1986, the car became the Buick Somerset. The interior is your standard Whorehouse Red velour, a theme used by everybody from Nissan to Chrysler during the 1985-1995 period. This cloth looks pretty nice for a car from sunny California. Digital dashes became very trendy during this period, with Mitsubishi, Subaru, Nissan, and even Toyota getting into the act during the first part of the decade, and everyone else jumping on the bandwagon a bit later. The radio face went into this weird pod perched over the HVAC controls, which looked like something from the Mars Base and made aftermarket audio-system installation nearly impossible. The factory cassette deck, if desired, had to go elsewhere in the console. The base engine in the Somerset Regal was the decidedly un-European Iron Duke four-cylinder with 92 horsepower, but this car has the optional 120-horse 3.0-liter V6. In theory, a 5-speed manual transmission was available, but I'm guessing that the quantity of so-equipped Somerset Regals was numbered in the high dozens. There's plenty of hard red plastic and fake wood inside, of course. Base price on a V6 Somerset Regal Limited came to $10,026 (about $24,000 in 2018 dollars). Meanwhile, a Pontiac Grand Am LE with the 3.0 V6 was nearly the same car and listed at $8,970. If you wanted even crazier electronics and an interior that looked like something out of a jet fighter, the 1985 Subaru XT GL had a $9,899 price tag. Give me savvy. Give me cool. Give me a car that breaks all the rules. Give me the look. Give me the feel. Give me the magic. Give me the wheel.