2007 Buick Lucerne Cxl on 2040-cars

Auto blog

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.

Junkyard Gem: 1993 Buick Roadmaster Sedan

In 1931, GM's Buick Division introduced an eight-cylinder engine in its stolid rear-wheel-drive sedan models, and Americans could buy big, comfortable Buick four-doors with straight-eights and — starting in the 1954 model year — V8s driving the rear wheels for more than a half-century after that. Then, the last rear-wheel-drive LeSabre left the assembly line in 1985, and it seemed that an era had ended forever. But wait! For the 1992 model year, Buick revived the Roadmaster name and applied it to an old-timey giant sedan with a V8 engine sending power to the proper wheels. Production of the Roadmaster sedan continued through 1996, and I've found one of those throwback Buicks in a Denver self-service car graveyard. Yes, in an America full of front-wheel-drive cars contaminated by European or — even worse — Japanese influences, The General brought back the spirit of the 1931 Buick sedan. Sure, it was really a near-identical twin to the "whale-body" Chevy Caprice, complete with Chevrolet small-block V8 engine, but that didn't matter. This was the kind of Buick that our prosperous great-grandparents bought in 1932 and 1948 and 1957. And the appeal of the great big eight-cylinder Buick sedan wasn't just limited to the United States. When the film adaptation of the great Marguerite Duras novel, L'Amant, was made, only a 1932 Buick 90 sedan would have made sense for the wheels of the wealthy Saigon heir. A big reason Buick is such an important brand in China right now is the legacy left by the memorable Buick machinery that owned the roads of 1930s China. These days, most of the 1992-1996 Roadmasters you'll see will be the station wagons, but we mustn't forget the sedans. Looking at the interior of this car is like a flashback to the 1960s, when stately Buick sedans had squishy seats you'd just disappear into when you climbed in. Cool-sounding names for ordinary features had gone out of style decades earlier, but not for the Roadmaster! Dynaride was a rear suspension that used air shocks and a compressor to keep the ride height level regardless of load. The last model year for a genuine Buick V8 engine was 1980, though you could make the case that the Rover V8 (made until 2006) was really a Buick all along. The engine in this car is pure Chevrolet: a 5.7-liter small-block V8 rated at 180 horsepower. Buick was a big Olympics sponsor at this time, while Oldsmobile handled golf. Still, the Buick-buying demographic of 1993 tended to approve of golf.

Paul Newman's overachieving 'Volvette' up for bid

For the longest time, it was the ultimate suburban family hauler. But this particular Volvo wagon had a life far beyond the Wegmans parking lots and high school playing fields. This particular 1998 V90 belonged to no ordinary soccer mom or dad, as Paul Newman owned it. Maybe he raced it around the rural roadways of Westport, Connecticut, with kids is tow or to pick up pizzas. The actor, who owned a race team in and out of three decades and racked up four SCCA National Championships, was given the “Volvette” as a surprise gift from one of his teams in 2007, so-called because it was crammed with a 400 horsepower 6.0-liter Chevy LS2 engine and four-speed automatic found in sixth-generation Corvettes from 2005 to 2007. The car, as well as dozens of artifacts of NewmanÂ’s racing career including rings, medals, art, and memorabilia, are on auction currently at RM Sotheby's online: High Speed: Paul NewmanÂ’s Racing Legacy. Bidding closes June 13. The V90 is one of two Newman machines on the block. Estimated winning bid is expected to be $20,000 to $25,000. NewmanÂ’s affection for Volvos dated back some time: his first pumped-up Swedish example was a1988 Volvo 740 powered by a 3.8-liter turbocharged V6 from a Buick Grand National. The car recently sold on Bring a Trailer for $87,777. The middle-child swapped Volvo was a 1995 960 with a supercharged 5.0-liter Mustang V8. Newman famously convinced friend David Letterman to get one (Letterman once co-owned Rahal Letterman Lanigan Racing). Quipping that Volvo station wagons were “just as ugly as homemade shoes,” Letterman nevertheless ordered one and went on to rave about it. With upwards of 400 horsepower or more, one such modified Volvo 960 tested by Car and Driver was as fast as a mid-Â’90s Mustang Cobra. The hot-rod Volvo currently on offer accommodates Porsche 911 components in the front end and mods to the driveshaft. Says the auctionÂ’s description, “The exterior was kept unchanged, as Newman was known to prefer a stock look with his Swedish station wagons.” Sadly, Newman had not enough years left to sufficiently enjoy the Volvette. He died of cancer at age 82 a year after it was given to him. Related video: Celebrities Buick Volvo Auctions Automotive History Wagon