GM offers buyouts

[CassTechGrad]

"March 9, 2023, at 10:37 a.m. DETROIT [[AP) — General Motors is offering buyouts to most of its U.S. salaried workforce and some global executives in an effort to trim costs as it makes the transition to electric vehicles."

I took a buyout in 2008, best thing I ever did. I moved my 401K into a IRA just as the stock market hit bottom and saw the value jump as the economy got better. Just luck, I thank God every night.

[313WX]

"March 9, 2023, at 10:37 a.m. DETROIT [[AP) — General Motors is offering buyouts to most of its U.S. salaried workforce and some global executives in an effort to trim costs as it makes the transition to electric vehicles."

I took a buyout in 2008, best thing I ever did. I moved my 401K into a IRA just as the stock market hit bottom and saw the value jump as the economy got better. Just luck, I thank God every night.

It's being offered to 58K employees [[essentially anyone with 5+ years with the company) and they're targeting $2 billion in cost reductions.

You know what that means. Mass layoffs incoming...

https://www.cnbc.com/2023/03/09/gm-b...d-workers.html

Ford isn't done either, BTW....

[1953]

Its wild to me that a company could say to 70 percent of its employees, "Hey, would you consider just leaving?" Like, don't they rely on some of those people to carry out the business? Yikes.

1953

[313WX]

Its wild to me that a company could say to 70 percent of its employees, "Hey, would you consider just leaving?" Like, don't they rely on some of those people to carry out the business? Yikes.

1953

The reality is, GM is no longer the high-volume / multinational automaker it used to be pre-bankruptcy. And when they fully transition to EVs, it will be an even leaner company.

So in essence, a lot of the salaried workforce is and will not be needed.

[313WX]

Looking at the big picture, Michigan's problem is that it's still heavily reliant on theae floundering dinosaurs for its prosperity, which will make it to difficult to compete with other states to attract new residents/investments.

[Nanska]

So, GM will be outsourcing more IT, R&D, etc. to India, South Korea?

[313WX]

So, GM will be outsourcing more IT, R&D, etc. to India, South Korea?

That's a good one, lol.

GM's South Korea operations are miniscule at this point, and they already cut & ran from India...

At this point, GM is mostly just a US, Mexico and China Automaker [[with skeleton operations in Canada, South Korea and Brazil).

[401don]

That's a good one, lol.

GM's South Korea operations are miniscule at this point, and they already cut & ran from India...

At this point, GM is mostly just a US, Mexico and China Automaker [[with skeleton operations in Canada, South Korea and Brazil).

Define Skeleton. GM has about 8,000 employees in Canada plus 1,500 contract workers.

[313WX]

Define Skeleton. GM has about 8,000 employees in Canada plus 1,500 contract workers.

Not sure where you got that 8,000 number. As of October 2020, it was ~5,000 total [[and still shrinking), which pales in comparison to how big GM Canada was pre-bankruptcy and even how big it was before the 2018 Unifor negotiations.

They also only have 2 legacy vehicles they're assembling at Oshawa, whose days are numbered with the EV transition. Granted, CAMI will be producing some BrightDrop vans

[401don]

Not sure where you got that 8,000 number. As of October 2020, it was ~5,000 total [[and still shrinking), which pales in comparison to how big GM Canada was pre-bankruptcy and even how big it was before the 2018 Unifor negotiations.

They also only have 2 legacy vehicles they're assembling at Oshawa, whose days are numbered with the EV transition. Granted, CAMI will be producing some BrightDrop vans

I was going with this:
https://media.gm.com/content/dam/com...ct%20Sheet.pdf

[313WX]

I was going with this:
https://media.gm.com/content/dam/com...ct%20Sheet.pdf

Pretty sure that one is old.

[401don]

Pretty sure that one is old.

Could be. I just think the term skeleton staff sounds like a couple hundred people.

[Richard]

The way the economy is going it is unsustainable,something has to give and a recession to bring things back in check.

Intersesting it was GM that said EVs are not economic to produce without incentives and government support.

I think stuff like this is just a taste of what is to come,the fallout in the automotive sector across the board in the next 20 years is going to effect millions of workers.

• GM selected Canada as a base for future automotive engineering and innovation jobs because Canada has a rich, pro-innovation location with an ecosystem of partners for transformational technology and innovation.

• GM Canada is well poised to help deliver on GM’s vision of a world of zero crashes, zero emissions and zero congestion.

Until Canadas government appropriates GM Canada for the greater good.

I do not get the zero congestion part,if you flip 1 million ICE drivers into EVs you still have the same amount of congestion

Unless they are going to be so expensive to operate that only 1/2 the population will be able to afford them,that would cut down on congestion,unless they are offering a free jar of Vicks Vapor rub with each EV purchase.

[Pat001]

If you get a buyout offer, they're sending you a message. Pay attention.

[13606Cedargrove]

If you get a buyout offer, they're sending you a message. Pay attention.

GM stockholders also need to pay attention.

[Danny]

It is GM's way to weed out lazy millennials so they can make way to for A.I. robots.

[313WX]

Could be. I just think the term skeleton staff sounds like a couple hundred people.

I meant relative to GM's size and footprint elsewhere.

[Cincinnati_Kid]

All these companies are going all in on EV's, yet we have a antiquidated power grid that barely can keep up with storm damage and power loss and it totally needs to be rebuilt across the country to handle the extra burden EV's will add to it. Not to mention the millions of charging stations that have to be implemented. GM says it wants to be totally EV reliant by 2030 which BTW, isn't very far away. Was this clearly thought out? Is that even possible?

[Richard]

^ look how much Disney world rakes in by selling a fantasy.

The bigger the humbug,the more people will like it.

P.T. Barnum

Lots of European countries have extended the hard and fast deadlines because they know they are unrealistic,the governments view is if you throw enough money at something,you can achieve your goal.

The problem is,the people they get their money from,have their limits,the reality is all it takes is a change in administration to make it all come crashing down,as we saw with solar and wind turbines,as soon as the federal funding dries up so does the initiative,not just in this country all over the world.

There is no way in the world that those little kids can dig the raw materials out of the ground fast enough in order to provide the manufacturing industry and supporting infrastructure to create millions of EVs across the world in that time frame.

There is a world wide shortage of power transformers fir the grid,has been for years.

I the future we are all going to be sitting there looking at our fancy new EV sitting in the driveway with no way to power them or wondering if we can get everything done in the two hours of electricity we will be allotted.

I agree,it’s like building a house before setting the foundation,but it does not matter really,as long as the money flows in and the optics looks good,one can always figure out how to deal with the ramifications later.

Who know maybe somebody in the future will figure how to move people without cars,they could always call it a streetcar or something like that.

[shovelhead]

Contract hires and outsourcing, the “new” GM.

Great ROI for the taxpayers.

[Richard]

So what happens as these manufacturers set up as separate EV manufacturers?

They are not going to carry the legacy costs over to the EV division,they would never be able to complete with upstarts.

The more transition over to EVs the less revenue is generated to carry ICE obligations on that side,I think I would hate to be the new hire today on the ICE side and thinking I could put my 20 years and expect a check for the next 40.

The buyout offer is probably the writing on the wall for lots of employees.like it was posted,take it and run.

[shovelhead]

The cynic in me says watch for a bankruptcy filing down the road by GM to shed itself of liabilities of ICE production and the formation of a new entity that encompasses the EV switch.

[Richard]

PARIS, Feb 18 [[Reuters) - Renault [[RENA.PA)is looking at creating separate divisions for electric and combustion engine cars, an idea other automakers have resisted in case it weakens their ability to use profits from polluting vehicles to fund a cleaner future.

March 1 [[Reuters) - Ford Motor Co [[F.N) on Wednesday will announce a reorganization under which its electric vehicle [[EV) and internal-combustion engine [[ICE) units will be run as separate businesses in a move to fast track growth in EVs, three people familiar with the plan said.

However, by separating the EV business into a separate unit, Ford would be setting the table for a possible spinoff down the road, industry officials said.

Companies such as General Motors Co [[GM.N) have resisted those calls, arguing that ICE profits will fund the transition to EVs.


Farley also said last week that Ford's EV and ICE businesses were underperforming on an earnings basis, adding that costs could still be cut from the ICE business.

https://www.reuters.com/business/aut...es-2022-03-02/


Results shows that e-fueled ICE and e-fueled hybrid vehicles have greater CO₂ emissions reduction potential than EVs.

https://www.sae.org/publications/tec.../2022-01-0745/

Tavares continues: "The legacy carmakers have been creating wealth for the last century. And suddenly, the fact that they are legacy is a penalty for them, because they, they have more constraints to move than the other guys, then that's fine. We'll stop thinking about that. And we'll start moving. But then the society in which we operate needs to accept the fact that when the car industry starts too fast, if there is some kind of lead collateral damage, then it's because we need to move."

Collateral damage here is what happens to suppliers, dealer networks, and even service providers who are not equipped or knowledgable on how to adapt to an EV future. Tavares says governments and NGOs want the automakers to move to electrification immediately, but don't want them to "create a mess," when the electric reality finally arrives.

https://finance.yahoo.com/news/stellantis-ceo-our-ev-game-plan-needs-to-leverage-our-internal-combustion-business-150506236.html


So they are saying that the public needs to prepare for the collateral damage.

Kinda like when they slammed freeways through cities.

We know it will create collateral damage but the greater good wins over,they just not say whose greater good and who takes one for the team.


It will be interesting to see how they sell that to the shareholders,okay we are going to take the profits from ICE and use it to fund EV in the hopes it is successful then you will see profits in 2030-2050.

Sounds risky to me anyways,at least Tesla is established and a proven return.

There are going to be winners and losers in this transition and after 2030,I kinda think we know who the majority of the losers will be already and that’s millions of people worldwide.

I guess push comes to shove,the Chinese are hiring.

In this day and age would the federal government find support to consider GM & Ford,to big to fail if it comes down to it,I do not think so.

Detroit as a region needs to think about what happens when the automotive footprint of today loses over 50% of its automotive workforce earning power.

They suckered people into a 6 - 8 billion dollar bridge based on the transfer of automotive parts cross border of that day,which will no longer exist,so what happens on a regional scale when you remove 50% if it’s revenue base?

You already know what happens,been there done that,still recovering from that collateral damage.

Collateral damage,the silver lining in all of that is,living in a tent has less environmental damage or impact then living in a house.

This is all by 2030 - that’s 7 short years,that’s the reality,going back full circle,yea take the money and run and invest it wisely,it’s not looking so secure in the future,you can count yourself out of not being the collateral damage.

I do not think it is cynical,it’s the best play,use the profits from ICE to fund EV,once EV is established,separate it,then bankrupt the ICE division to clear the employees and legacy costs.

Its nothing personal,it’s just business.

[shovelhead]

In this day and age would the federal government find support to consider GM & Ford,to big to fail if it comes down to it,I do not think so.

That card was played once before.

[Richard]

You have to hand it to Stellantis,they got balls and are honest.

They are saying right now ,Look it was the federal government supported by the people that forced us into this corner,do not come crying to us when you become the collateral damage,you are getting what you asked for.

When you look at just the hard and fast emission controls implementation,it wrecked havoc on the automotive industry from the 70s to the 90s,it cost the end user millions if not billions,and that was just one aspect of the bigger picture of the automobile.

Imagine what this is going to do.

By definition an EV is not even an automobile any more

Automobile, byname auto, also called motorcar or car, a usually four-wheeled vehicle designed primarily for passenger transportation and commonly propelled by an internal-combustion engine using a volatile fuel.

We are back to the 1800s with an electric propelled horseless carriage .

In theory Motor City still can apply in Detroit,because they are electric motors and gasoline powered Engines.

I guess it would have not been the same if they called it Engine city.Just does not have that ring to it.