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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 Envision Plus is a seven-seater tweener developed for China

Buick has filled the gap separating the Envision and the Enclave with a new crossover named Envision Plus. Launched at the Shanghai auto show, the three-row people-mover is scheduled to go on sale in China later in 2021. The plus-sized Envision stretches 190.7 inches long, 74.1 inches wide, and 66.7 inches tall, figures that make it around eight inches longer and two inches taller than the regular Envision. It's also a full 14 inches shorter, four inches narrower, and three inches lower than the Enclave, which is the biggest crossover in the Buick range. Designers didn't settle for stretching the Envision's wheelbase. They gave the Plus a more upright front end characterized by a taller grille, a flatter and longer roofline, and a redesigned rear end accented by a strip of bright trim that connects the lights. Only photos of the upscale Avenir trim (shown above) have been published so far. Images of the cabin are not available yet. We expect the Plus offers an interior close to the standard Envision's — from the driver's point of view, at least. The biggest difference is that the longer Envision lives up to its name by letting motorists take more gear or kids along for the ride thanks to a more spacious trunk and third-row seats. Power for the Envision Plus comes from a turbocharged, 2.0-liter EcoTec four-cylinder engine fitted with 48-volt mild-hybrid technology. Bolted to a nine-speed automatic transmission, the turbo-four is the same basic engine found in the American-spec Envision, where it develops 228 horsepower and 258 pound-feet of torque, but figures for the Plus weren't released. Front- and all-wheel-drive models will presumably be available. Buick will release pricing information closer to the model's on-sale date. As of writing, the Envision Plus has only been announced for China, where it will be built, but unverified reports claim it will arrive in American showrooms before the end of 2021. We've reached out to the company, and we'll update this story if we learn more. 2021 Buick Verano Pro GS View 5 Photos What else did Buick show in Shanghai? Buick no longer sells sedans in America, but it remains present in that segment on the Chinese market. In addition to the Envision Plus, it unveiled a model named Verano Pro developed specifically for China, built locally, and aimed at relatively young buyers. At launch, motorists will be asked to choose between the regular sedan and a sportier-looking variant that wears the storied GS emblem.

2020 Buick Encore drops more powerful 1.4-liter four-cylinder option

It's not just Chevrolet Equinox, Terrain and Traverse crossovers and Cadillac CT6 enjoying the engine and trim switcheroos this spring. Based on the order guide, CarsDirect reports that the Buick Encore, Buick's most popular model by far, will lose one of its two engines. The 2019 Encore offers a 1.4-liter four-cylinder in two guises: one with 138 horsepower and 148 pound-feet of torque, the other with 153 hp and 177 lb-ft and stop/start. The more powerful version will not be an option on the 2020 Encore. The upgraded motor is a $250 option, but only after spending an additional $2,600 to move up to the Sport Touring trim, or shelling out $6,100 to reach the Essence trim. Aggressive deals could make the higher trims more economical, though; at the time of writing, the Sport Touring Encore includes $3,250 cash allowance, making it $650 less expensive than the base Encore 1SV. The more powerful 1.4-liter engine also delivered better gas mileage, with buyers getting one more mile per gallon in combined driving. Even so, buyers didn't dig it. In comments to CarsDirect, a Buick spokesperson said those purchasing 2019 Encores have only chosen the burlier motor 12 percent of the time. The weak take-rate could end up doing Buick an easy favor. The Buick Encore GX is expected to make landfall on U.S. shores sometime this year, riding on a different platform than our present Encore, and bringing a longer wheelbase with it. It will slide into the lineup between the $23,200 Encore and $31,995 Envision. This is all hypothetical at the moment, of course, but that seems a perfect place to insert the 153-hp 1.4-liter as an exclusive standard feature.