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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.

Opel did a great job on the 2018 Buick Regal

Ladies and gentlemen, the 2018 Buick Regal. The car you see is actually the Opel Insignia Grand Sport, but General Motors will bring it to the United States as the next-generation Regal virtually unchanged. The Insignia, revealed Wednesday by Opel, gets a sleek new design punched up with LED lights and sweeping proportions meant to conjure a fastback silhouette. It will debut in March at the Geneva Motor Show and launch next year in Europe. Expect the Regal to go on sale in the middle of 2017 in the US. The Opel-Buick relationship has been tight in the last decade, with the outgoing Regal earning strong praise for its German-tuned chassis and premium appearance. While Buick has been the recipient of much of Opel's work, the Insignia is now borrowing one of Buick's great names: Grand Sport. View 12 Photos Opel points to the Monza concept as the source of inspiration for the Insignia, though Buick will undoubtedly say the Avenir concept was the Regal's creative stimulus. Some think it looks like a Mazda. Mark Adams, vice president of GM Design Europe also oversees the automaker's global styling operations. "Its design combines flowing lines and subtle surfaces with crisp, precise lines to even exaggerate its dramatic proportions: it looks longer, lower, and wider than it actually is, and it definitely looks upscale," he said in statement. Expect similar thoughts for the Regal. Opel is also working on an Insignia wagon, which we've captured in spy photos before. We've also heard whispers that it will come to the US market with a Regal badge. Opel's announcement previews many of the details we'll see in the new Regal. Based on a new chassis, the Insignia is 386 pounds lighter than the previous car. The wheelbase is 3.62 inches longer and the track is .43 inches wider. Opel tapered the front and rear overhangs, so there's only a slight gain in overall length. The interior has more room, Opel says, and features a touchscreen with GM's IntelliLink system. The car will also have several drive modes, which tailor the chassis, throttle response, and shifting dynamics. Other technologies includes a head-up display, 360-degree camera, lane-keeping assist, adaptive cruise control, and cross-traffic alert. The Insignia will offer an eight-speed automatic transmission and all-wheel drive with torque-vectoring. We expect both to come to the US market. Meanwhile, another GM brand, Vauxhall, unveiled the Vauxhall Insignia for the British market.

Spy photos of the upcoming Buick Regal wagon, via the Opel Insignia

We're pretty sure Buick is working on a Regal wagon. And because the Regal is the Opel Insignia on the other side of the pond, these spy photos show us what's in store when it eventually turns into a Buick. The rakish wagon was lightly camouflaged, giving us our best look at the upcoming vehicle. The wagon shares a lot of the same design cues as the Insignia sedan that we spotted earlier. The bottom of the front end is covered in heavy camouflage, masking the wagon's grille. It's unsure to tell whether the black nostril-like pieces sitting above the grille are vents or just tape. The prototype still shares the same upright nose as the model we spotted earlier, giving the wagon a wider stance than its predecessor. The side profile of the wagon is sleeker, thanks to the extra four inches between the axles, than the current model is, with the design mimicking that of a shooting brake instead of a traditional wagon. The rear end of the wagon is also more upright with the taillights and bottom part of the fender jutting out beyond the glass. The boxy design sitting atop of the rear end doesn't match the rest of the vehicle and appears to be a part of the car's camouflage. With the tunnel-like design at the top gone, the rear end would have a more streamlined design. With the next Regal expected to continue on as a rebadged Insignia, the likelihood of a Regal Wagon in the US look good, but aren't set in stone. Late last year, Buick filed two trademarks for "Tourx" and "Regal Tourx," pointing towards a high-riding wagon with all-wheel drive. Imagine these spy shots with a taller suspension and some crossover-inspired trim pieces and you have a wagon that could take on the likes of the Subaru Outback and Audi Allroad. Related Video: Featured Gallery 2018 Opel Insignia Grand Sport Tourer Spy Shots View 10 Photos Image Credit: CarPix Design/Style Spy Photos Buick GM Opel Wagon Luxury opel insignia