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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 tops in Consumer Reports' annual brand rankings

Buick is the first US-based automotive brand to crack the top 10 in Consumer Reports magazine's annual brand report cards. US automakers also placed three vehicles on the magazine's list of "top picks" for vehicles, the first time that's happened in 17 years. The rankings were unveiled Tuesday in the magazine's annual auto issue. Buick placed seventh in the brand rankings. But the brand rankings and top picks still were dominated by Japanese and German manufacturers, with Lexus, Mazda, Toyota, Audi and Subaru taking the top five brand spots. The magazine calculates each brand's overall score with a composite of its vehicles' road-test scores and reliability scores for each model in its annual survey of subscribers. It's the third year for the brand rankings. Porsche placed just ahead of Buick at number six, while Honda, Kia and BMW rounded out the top 10 brands. Mercedes-Benz, Acura and Infiniti all suffered precipitous declines in their rankings due to unreliable new models or poor road test scores. Mercedes fell out of the top 10 to 21st, while Acura dropped from number two to 11 with an unimpressive test of the new RLX sedan, the magazine said. In the model rankings, the top overall finisher was California-based Tesla's Model S electric car, for the second year in a row. The Model S, which cost the magazine $89,650, finished first due to its performance and technical innovations, the magazine said. Buick's Regal midsize car beat the BMW 328i as the top sports sedan, and the Chevrolet Impala was named the top large car. The model rankings show Consumer Reports' favorite among the 270 vehicles its team has recently tested. The rankings are closely watched in the auto industry, since shoppers consistently cite Consumer Reports as a main source of car-buying advice. Other top picks included the Subaru Impreza in the compact car category, Subaru Legacy in midsize cars, Toyota Prius as the best green car, Audi A6 luxury car, Subaru Forester small SUV, Toyota Highlander midsize SUV and the Honda Odyssey minivan. Japanese vehicles won six of 10 top pick categories, but that was the smallest number in the 19-year history of Consumer Reports top picks. "For years domestic automakers built lower-priced and lower-quality alternatives to imports, but those days are behind us," said Jake Fisher, the magazine's director of automotive testing. But other U.S.-based automakers still had problems.

Buick Enspire EV crossover concept claims 370 miles of range

For the Beijing Auto Show, Buick is showing yet another crossover, this one in concept form. It's called the Buick Enspire, and unlike the rest of the brand's crossovers, this one is all electric. It's more than just a repurposed Bolt EV, too. Instead of the Bolt's 150 kW and 200-horsepower motor, the Buick has a 410 kW motor, which equates to 550 horsepower. Buick claims the motor will get the crossover to 60 mph in just 4 seconds. The Enspire isn't all about performance, though. It would also have a very healthy claimed range of 370 miles, topping that of the longest-range Tesla. Fast charging is supported, with Buick saying it can recover 80 percent of its charge within 40 minutes, though the company doesn't say how potent the charger used for that number is. It also apparently has support for wireless charging. This Enspire concept is rather pleasant looking, too. It has smooth, elegant curves draped on a body with a very wide, aggressive stance. The grille is an interesting evolution of Buick's current design, exaggerating the current crossbar into large wings that spread into the lights, and trading the vertical slats of the main grille for a solid illuminated insert. The rear taillights are also distinctive in how they comprise one long, slender line that form a pseudo spoiler in the rear hatch. The interior is plenty swoopy, too, with a number of futuristic touches. It has an OLED touchscreen for infotainment, and the windshield features augmented reality capabilities displaying road information and navigation routes. Luxury touches include real wood arm rests and center console. Whether we'll see a production Buick with the capabilities of the Enspire is anyone's guess. Surely to have that level of power and range would make it immensely expensive, similar to or surpassing the Tesla Model S and the Jaguar I-Pace. That would be rarefied air for Buick. But we wouldn't be surprised to see either an all-new crossover, or a redesigned current model, sporting the designs seen on this concept. And many of the cues will likely spill over to other Buick products. And while the performance seen in this concept might not reach production, we also wouldn't rule out an electric Buick of some sort, probably a crossover in the near future. General Motors has made it very clear it's going to push electric vehicle development, and a Buick crossover would be a good choice for a few reasons.