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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.

Is Buick's surprise Detroit concept a Camaro-sized coupe?

Tomorrow night marks the unofficial start of the 2016 Detroit Auto Show. Keep your eyes peeled for a number of reveals, including a surprise debut from Buick. Yes, Buick. And we think it's going to be something really hot. According to a report from Bloomberg, the Tri-Shield's secret car could be a Camaro-sized sport coupe concept. As Bloomberg explains, it'd certainly gel with the impression the company is trying to put out – that it's no longer a brand for those with one foot in the grave. Introducing a sports coupe, even as a concept, could certainly reinforce that message. And if it happens to make production – which is not a certainty, Bloomberg's secret source says – it could certainly help Buick drive its average buyer age down from 59. Bloomberg doesn't offer any speculation on Buick's new coupe, but we have no problem making educated guesses. Our most reliable conjecture is this: it will ride on General Motors' Alpha platform, which underpins both the Camaro and the Cadillac ATS. And with a certain twin-turbocharged V6 in the GM stable, we've got an idea of what kind of engine could be shown. That speculation will have to suffice for now. But don't worry, we'll have official details, live images, and video tomorrow when Buick unveils its new concept in Detroit's Eastern Market.

Next Opel Insignia to adopt sleeker looks

The very first set of spy photos of the next-generation Opel Insignia have dropped, giving us a look at the more svelte, aggressive, and stylish look of the popular sedan. As a reminder, the Insignia is sold here in the United States as the Buick Regal. There's only so much we can discern from these photos, thanks to the very heavy camouflage. But we can get a look at the new Audi A7-like roofline, which our spies citing similarities to the Opel Monza concept car from the 2013 Frankfurt Motor Show. The Monza link fits with our previous reports, which claimed the gullwinged wagon would serve as a prime source of inspiration for both the Insignia and US-market Regal. Aside from the significantly redesigned sheetmetal, Opel is also increasing the size of its flagship sedan, adding nearly four inches between the axles. According to our spies, the goal is to build a vehicle comparable in size to the Skoda Superb, a roughly Volkswagen Passat-sized sedan based on the VW Group's MQB platform. What's most interesting for US customers, though, is the body style shown here. Like the aforementioned A7, the next Insignia will be offered as a five-door model, rather than a traditional sedan. The five-door hatch would later be joined by a traditional wagon. It's unclear whether the US market Buick will take a similar route, or whether General Motors will demand a four-door variant exclusive to North America. Check out the spy photos above, and keep an eye open for more on the next Insignia/Regal. Don't plan on seeing it at an auto show any time soon, though. It's not slated to debut until the 2017 Frankfurt Motor Show.