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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.

2021 Buick Envision's bold design means small space gains, a few big losses

So far, every preview we've had of the 2021 Buick Envision compels us to believe that it isn't playing in the same league as the current Envision, nor is it playing the same sport. The chiseled, crisp exterior is matched by an interior that, in pictures at least, sends a genuine premium message. GM Authority got early intel on dimensions for the new crossover, the numbers showing that the only close relationship between the current and the new Envision is in size. According to GMA, the 2021 Buick will be 185.5 inches long on a wheelbase of 109.4 inches, it'll stand 74.1 inches wide without mirrors, and 64.6 inches tall. Front and rear tracks are matched at 63.3 inches. That makes the new version 1.8 inches longer than the current five-seater, with a wheelbase stretched 0.9 inches, while width is 1.7 inches wider but overall height is 2.2 inches lower. The track has been expanded by 1.3 inches front and back. The four-trim lineup will be base, Preferred, Essence and Avenir. Buick's website pegs the current Envision at the single curb weight of 3,755 pounds. GMA writes that the new car comes in at 3,685 pounds in base form, or 3,932 in top Avenir trim. Those could all represent weights for front-wheel-drive models. AWD will be optional on all but the base 2021 Envision. The price for edgier design is a tiny cut in interior room in front. In the coming crossover, front headroom shrinks 0.4 inches to 39.6 inches, front legroom shrinks by 0.5 inches, front shoulder room goes down by 0.3 inches. Front hip room gains 0.7 inches, however, Occupants in the row behind get a tiny bit more space in two dimensions, rear headroom going up 0.4 inches, rear legroom by 1.8 inches, Rear shoulder room gets shaved 0.7 inches, and those haunches on the 2021 model take a bite out of rear hip room, that spec dropping by 5.7 inches to 47.4.  Cargo room sees a slight dip, too, there being 25.2 cubic feet of space behind the second-row of seats compared to 26.9 feet available now. The gap grows with the rear seats down, the coming Envision able to swallow 52.7 cubic feet behind the front row, the current Envision managing 60 cubic feet.  When product starts showing up on dealer lots, we're to expect a 2.0-liter turbocharged four-cylinder under the hood with 230 horsepower and 258 pound-feet of torque, shifting through GM's nine-speed automatic transmission. GMA believes pricing will start around $34,000, which would be about $500 more than the current Envision.    

Dear America, you don't need as much power as you think

I recently won a 0-20-mph drag race against a Chevrolet Volt. A day later I smoked a Tesla Model 3. “Um OK,” youÂ’re thinking, “that canÂ’t be that hard.” Well, except that the vehicle I was piloting featured a hybrid powertrain of a Bosch electric motor and 40-year-old human legs. ThatÂ’s right, I out accelerated automobiles on a bicycle. On another occasion, I found myself driving behind my wife in her 2023 Kia Niro EV. The specs say it accelerates from zero to 60 mph in 7.8 seconds, a time thatÂ’s six-tenths off the pace of KiaÂ’s rear-motor-only EV6, a vehicle IÂ’ve repeatedly read being described as “slow.” The Niro, therefore, must be extra-slow. And yet, as she turned left onto a highway onramp, she rocketed forward leaving me in a Mercedes-AMG C43 and every other car in the left turn lane in the distance. I share these anecdotes not to boast about my cycling ability, nor my wife having a lead foot. No no. IÂ’m crap and she really doesnÂ’t. Instead, I want to point out that most drivers accelerate very slowly. The notion of “bigger is better” will forever be engrained in the American psyche, but when it comes to horsepower largesse, todayÂ’s cars hilariously exceed both the expectations and driving habits of most drivers. Most car buyers just donÂ’t have a frame of reference when it comes to equating 0-60 times, output figures and the actual feeling of acceleration.   Eat my dust, Mr Volt! Now, we in the automotive-reviewing media absolutely share some of this blame. We like accelerating quickly and cars that accelerate quicker are bound to reap more positive reviews. At the very least, weÂ’re obligated to point out when a carÂ’s acceleration is slower than a certain competitor's or the segmentÂ’s average. However, just because Car A is slower than Car B doesnÂ’t make Car A slow. It makes it slower. For example, the dual-motor EV6 may be 2 full seconds quicker from 0-60 than the rear-motor model ­– a relatively massive difference – but barring a back-to-back drive or a wealth of comparative knowledge, itÂ’s laughable to think that the average driver could possibly deem the rear-motor version “slow.” Because it isnÂ’t. The near-universal use of turbocharging, the popularity of all-wheel-drive and increased proliferation of electric motors has resulted in this rapid drop in 0-60 times thatÂ’s outpacing customer expectations and driving habits.