Trouble in paradise? Looks like the EV scam is collapsing without the Fed’s easy money.
DETROIT – General Motors will offer voluntary buyouts to a “majority” of its 58,000 U.S. white-collar employees, as it aims to cut $2 billion in structural costs over the next two years, according to a letter sent to workers Thursday from CEO Mary Barra.
The “Voluntary Separation Program,” or VSP, will be offered to all U.S. salaried employees who have spent five or more years at the company as of June 30. Outside of the U.S., the automaker will offer buyouts to executives with at least two years of time at the company.
GM expects to take a pretax charge of up to $1.5 billion related to the buyouts, according to a public filing Thursday. The majority of the charges are expected to be all-cash and occur during the first half of the year, the company said.
Barra, in the letter Thursday, said the program is “designed to accelerate attrition in the U.S.,” assisting the company in potentially avoiding “involuntary actions” in the future. The buyout offer comes after the Detroit automaker said last week it would terminate about 500 salaried positions globally.
The last time GM offered such a large buyout program for salaried employees was 2019.
“Employees are strongly encouraged to consider the program,” GM said in an emailed statement to CNBC Thursday. “By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market.”
GM announced the $2 billion cost-cutting program in January, saying between 30% and 50% of the savings were expected during 2023. At the time, executives said they were planning head count reductions through attrition rather than layoffs.
U.S. employees who are approved for the buyout will be granted one-month pay for every year they worked up to 12 months, as well as COBRA health coverage. They also will receive prorated team performance bonuses and outplacement services. Global employees will receive base salary, incentives, COBRA and outplacement services.
Eligible employees interested in the program must sign up by March 24. Those who elect to take a voluntary package and are approved will depart by June 30.
A company spokeswoman declined to disclose how many employees the company is targeting to accept the buyout packages. At the end of last year, GM employed about 81,000 salaried employees worldwide, according to public filings.
Happy Recession / Depression season, and I still have my Hazardous Chemical spill decorations up. I am going to get my WWIII decorations out of the closet so I can have them ready next.
Do they look like these?
Or more like this place for decoration storage?
This is the last time I am going to warn you fuqueres about showing pictures of my basement!
Which one of you found the combination to my vault?
damn, it was the same combination i have on my luggage!
I don’t think Sam Brinton cares about unfashionable black firearms, but if you had some couture luggage, Sammi is the person I’d check with.
So GM is going to give these people a years salary to pack up and get lost, and they’re telling them very nicely that they should take the offer so they don’t have to fire them later.
First comes stock buybacks, then employee buyouts, and finally layoffs.
Sorry but Blackrock and State Street showed up first…..then buybacks, buyouts and layoffs.
Virtually NO EVs would EVER have been sold if not for the theft of monies from the taxpayer to fund the rebates. A few rich folks would have throw away their money, and possibly this might have funded a drive to make cheaper and cheaper versions that everyone else could have afforded, but like everything else the government throws money at to purchase votes, etc. the prices have only risen to levels out of reach of most. I never bought a $10,000 Phillips flat screen when they came out, but a lot of rich folks did. Now I see a 55″ flat screen from Hisense (ok, not the best) at Costco for $289.00. That happened BECAUSE there was NO GOVERNMENT “incentive” for anyone to buy these things. I’m not saying that these EVs would actually be practical at this point, or that the critical hurdles would have been overcome, but without price incentives/tax incentives, I guarantee that smaller, functional, decent distance models at decent prices would be far more likely today.
That’s the point Eric Peters makes when he says the manufactures focus on high end, crazy fast EVs and not practical, low power, light weight units. GM built the Hummer, which weighs 11k lbs., 0-60 in 3 seconds and cost 113k. They sold 854 of them in the US market last year. God only knows what they spent on R/D and production. Probably not a very good ROI.
The good news is, for them, .gov already set the precedent of bailing their sorry asses out when they make poor management decisions.
Ford, on the other hand, sold an average of 100k new Broncos in 21/22.
The hummer was purpose built for the military, so financed by the military overall by buying them at over inflated costs. So GM made a shit load of money, just not on the civilian models.
Hands down the shittiest military vehicle I ever drove was the Hummer. They are really poor quality and even worse design. They only thing they are good at is creating high maintenance costs.
So they were successful then
Ah, the role Haliburton and co. play….
There was going to be an auction years ago of surplus/retired military vehicles and I thought it might be cool to buy a beat up Hummer. I was talking to a Nat Guard mechanic and he told me they were straight from hell regarding maintenance. He said the book says replacing the engine requires 62 hours. For comparison, I saw an Army Reserve mechanic replace the engine in an M-48 tank on a city street in an hour or two from start to driving away. It blew during a 4th of July parade.
I’m referring to the new EV.
> The hummer was purpose built for the military
The HMMWV (aka Hummer H1) was designed for military use and eventually sold in civilian form. The current EV bearing the Hummer name bears no relation to the HMMWV or to any of the other vehicles sold as Hummers in the past. (The H2 and H3 were derived from civilian models…the Chevy Tahoe and TrailBlazer, IIRC.)
GP Vehicle,,,JEEP. been down hill ever since,
Imagine a battlefield of countless EV Hummers approaching the enemy… are they hardened against EMP?
It was just 5 years ago that GM was admitting that they were losing at least $10K on every EV they sold … but they were making it up in the volume …
3 seconds? That is not your Fathers Hummer. Electric only. And who the H wants an electric Hummer?
Hollywood clowns.
Electric Hummers, huh? Sounds like a luxury feature on one of them new fangled sex robots.
Gm building shitty murikan made vehicles since the 90’s. Now making even shittier vehicles costing more, trying to offload the bloated administrations. Well its a start.
The big reason that Japan was able to become a booming manufacturing nation is because of the crap vehicles being manufactured in the US in the 70s. The US companies thought they could sell the US public any old piece of crap forever at whatever prices they felt like charging. They promised the unions enormous retirement benefits, which has crippled the industry ever since, didn’t automate in time to stop the Japanese surge, and didn’t address quality. It has been downhill ever since. Same thing happened in the steel industry, which is why steel output fell so severely.
And like Harley. Complained to the govt that rice rockets were ‘stealing’ their market. Govt imposes import taxes on rice rockets which harley then promptly raised their crappy bike prices accordingly. Muh capitalism.
I bought a new 2000 Chevy S10 w/ 4.3ltr V-6 and drove it 15 years and 195,000 miles and it was the most reliable car I ever owned. When I test drove it I had to travel streets with a 35mph limit. I never asked about the motor. The next day on the expressway to work I quickly realized this little truck has some serious pep. Dumb luck because I could have ended up with a 4. The only negative was that it had some kind of governor on top speed because at 95 mph the motor would begin to lose speed until I let off the gas and would then resume unless I hit 95 again. I bet that truck would easily top 140. Plenty of power and pedal left at 90+ until…
There’s a chip in the electronics that cause GM trucks and vans to stall under 100 mph. Don’t know about other makes. My neighbor is a mechanic for Communistically Wealthy Edison who works on their trucks. He has a place where he can buy custom replacement chips that do not have the governor feature. A lot of high performance sedans have governors that cut out at 155 mph. These various governors are there at the insistence or request of insurance companies.
The road speed is limited to the speed rating of the factory equipment tires.
I do restoration work, my specialty being ’60’s muscle cars – mostly GM. I love anything Pontiac and mid-year Corvette coupes. I have built several cars that have gone down the runway at Mecum in Kissimmee. That said, GM died to me in 2009, and haven’t owned anything from them since. This once revered giant is beyond dead to me. May they rust in pieces.
You can say the same thing about all of them. Ford filed for a patent that shuts down their cars if you miss a payment. So they can shut your car down for any reason.
EV’s will be the death of the automakers. I guess that’s the endgame.
People should really look at that patent, and ask themselves, what is this medical institution doing here…..
It was publicized more than a year ago that new cars after 2025 or so will be mandated by the government to have a kill switch …
Personally, I wonder if, for example, VW hasn’t already granted the government intrusion into its cars via the IQ.drive system in the more recent models — a ‘system’ that, according to VW technicians, cannot be removed or permanently disabled without permanently disabling the car.
The whole ‘diesel gate’ fustercluck against VW 6 or 7 years ago likely brought on such a phenomenon … but no one seems to be admitting that any such program exists.
Sadly, my ’22 VW Golf GTI has such a system … and I really regret the purchase because of it.
stick to german diesels pre-1993 – thats when some bullshit EU rules forced them all to go to electronic injection. before that, they were dead-simple indestructibly reliable all mechanical systems.
GM was dead to me in 1978 when my mothers new car, an Olds 98, would repeatedly fail to start. The dealer told her she did not know how to start a car.
See above. That is why Japanese cars were so successful.
GM died to me in 1978, the drivers ed cars the Dallas ISD bought that year, brand new from the dealer, V-6 Olds Cutlass with the POS TH 200 transmissions. The transmissions on several of them were factory broke, wouldn’t shift out of first gear, or randomly downshift, or fail to even move after stopping at a red light. I got my license so it wasn’t all bad.
The last GM bought was back in 2006, a 2500 Series Work Truck. No carpet, bench seats. Ran well for years until an employee totalled it.
Bizwise, switched to Toyota for trucks (2022 1794 Edition Tundra these days – 368HP) & MB Sprinter Vans. Personally, I buy old Cayenne diesels, which are becoming extinct.
MB Sprinters are the cat’s ass in my book.
Somehow the word “nimble” is not what I think of wrt GM.
GM, a Pension that happens to make vehicles.
A year or so after the auto bailouts in ’08 it was reported that GM had by far the highest hourly wage rate in their assembly plants. Any wonder they are where they are now? (Disclaimer: bought my last GM piece of shit in the early ’80s and swore “never again”-and have kept that promise).
Just waiting for GM to renege on their pension obligations, totally owned by the government globalists and would take out most of the middle class that is left as Chrysler and Ford are sure to follow…