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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.

Buick Century attracts 15,000 bees searching for new hive

By most accounts, the fifth-generation Buick Century isn't considered a desirable place to live. For a swarm of 15,000 bees, however, the lure of the front-drive A-body proved irresistible, much to the chagrin of the car's Las Cruces, N.M. owner. The unidentified man had gone shopping in an Albertson's grocery store, returned to his car, placed his purchases in the car, and began driving away. Then he noticed that something was, according to the New York Times, "amiss." The Buick owner called 911, which dispatched the Las Cruces Fire Department to the scene. Luckily, one firefighter and paramedic in the brigade, Jesse Johnson, is a hobbyist beekeeper. Though he was off duty at the time, Johnson sprung into action and arrived at the Buick with equipment to transfer the bees safely, including an empty hive box, a beekeeper's outfit and lemongrass oil, which mimics the scent of the queen. Johnson told the Times that bee colonies will often split in springtime, with a swarm following a queen to search for a new home. Apparently, the partially open window of a 1982-96 Buick Century looked like an inviting, perhaps temporary, location as the bees relocated. Johnson removed 3.5 pounds' worth of bees in a span of less than a half hour. He is rehabitating the bees at his home, where he maintains other hives. “IÂ’ll do anything to keep people from killing the bees,” Johnson told the Times. He also explained that when bees swarm like this, they are typically pretty docile. Amazingly, the Buick owner was only in the store for 10 minutes, the paper reports. Johnson believes the bees came from a nearby neighborhood. Fortunately, no one was injured during the incident. One Albertson's security guard was stung, according to the Las Cruces Fire Department, and another firefighter was stung on the lip. For the record, the Las Cruces Fire Department says they don't routinely handle bees. It was just fortunate that Johnson was around. It's not clear if the bees would have flocked to a similar era Chevy Celebrity or Oldsmobile Cutlass Ciera. Related Video:

Meet the Buick Velite 7, the Chevy Bolt's Chinese cousin

The Buick Velite 7 has officially been revealed after having been leaked and spied a few months ago. The name derives from Buick's line of electrified models it sells in China, of course the design shows it's most closely related to the Chevy Bolt EV. Buick hasn't revealed many details about it, and only one photo, but we do get to see it and we also have a range estimate. The range estimate is 500 kilometers on the NEDC cycle, which translates to 311 miles. That's actually less than the NEDC estimate for the Bolt EV, which is 565 kilometers or 351 miles, which increased for the 2020 model year from 520 kilometers or 323 miles. Of course NEDC figures tend to be much higher than EPA numbers, which rated the current Bolt EV at 259 miles and the previous version at 238. As such, we would expect this Buick to have an EPA range closer to 210 to 220 miles. We don't know what resulted in the lower range, but it could have something to do with additional weight or slightly worse aerodynamics. It could be both. Design-wise, the Buick is clearly based on the Bolt, but has a more aggressive front bumper and a trendy partially floating roof. It also seems to have a slightly boxier, taller profile, mainly because of the nose. Buick hasn't released any other details about the crossover, preferring to save them for the car's launch later this year. Since it seems so closely related to the Bolt, it probably has the same drivetrain: a single electric motor sending 200 horsepower and 266 pound-feet of torque to the front wheels via a single-speed transmission. Related Video: