GM to hire 1,000 engineers in Michigan!

[DetroitPlanner]

I calculated the impact of these additional jobs last night. The state should get about $4.9 million in additional tax revenue from these jobs alone if these folks have an average income of about $45k. Each of these 2,000 generates about 4 other jobs in retail, service, and manufacturing support locally so thats 10,000 jobs. Typically these jobs won't pay as much as engineer jobs do, but it will help pull the state and the region slightly further out of the recession, and provide some stability to state and local tax entities.

[ndavies]

I calculated the impact of these additional jobs last night. The state should get about $4.9 million in additional tax revenue from these jobs alone if these folks have an average income of about $45k. Each of these 2,000 generates about 4 other jobs in retail, service, and manufacturing support locally so thats 10,000 jobs. Typically these jobs won't pay as much as engineer jobs do, but it will help pull the state and the region slightly further out of the recession, and provide some stability to state and local tax entities.

You're greatly underestimating an engineers salary. My salary was $45K when I started my career 25 years ago.

A starting electrical/mechanical engineer at the big three is at least $65K, an experienced engineer is going to be closer to $85K. Many controls engineers [[the kind of engineers needed for Electric and hybrid vehicles) are at or near $100K. And that's with a %15 whack from what we were earning just 3 years ago.

They are also going to have to pay a premium to get good engineers after all the layoffs they did in the last 5 or so years. Most of the engineers I know wouldn't take a job at chrysler for twice the price. Engineers by nature are very risk adverse.

It pays to be good at Math.

[JBMcB]

You're greatly underestimating an engineers salary.

Especially for engineers who are good at battery and power systems technology. Those are in pretty high demand right now. All automakers, and suppliers, are out to get the best talent they can in those fields right now.

[DetroitPlanner]

You're greatly underestimating an engineers salary. My salary was $45K when I started my career 25 years ago.

A starting electrical/mechanical engineer at the big three is at least $65K, an experienced engineer is going to be closer to $85K. Many controls engineers [[the kind of engineers needed for Electric and hybrid vehicles) are at or near $100K. And that's with a %15 whack from what we were earning just 3 years ago.

They are also going to have to pay a premium to get good engineers after all the layoffs they did in the last 5 or so years. Most of the engineers I know wouldn't take a job at chrysler for twice the price. Engineers by nature are very risk adverse.

It pays to be good at Math.

It also pays to know that most folks are not taxed on what they make. Did you not pay your taxes based upon deductions? Personal deductions, housing interest, other deductible expenses like charity add up! Not everyone is going to start at a high wage. There is currently a glut of engineers looking for work The auto companies know this and are going to hire accordingly.

[JBMcB]

There is currently a glut of engineers looking for work The auto companies know this and are going to hire accordingly.

There is a glut of mechanical/automotive/industrial engineers. Electrical engineers who are talented in power systems are being snatched up by computer and consumer electronics companies who have to meet Energy Star guidelines to sell to the government. Those are the industries the car companies are competing with as far as talent acquisition goes, and that's who GM is hiring now.

[Pingu]

You're greatly underestimating an engineers salary. My salary was $45K when I started my career 25 years ago.

Same time frame, as a double-E, I hired in for a pisswater $23k [[plus $4k COLA, gotta luv that UAW! Half of what they got we got). Took me eight years to hit $45k [[Being an ignorant, compliant idiot has its good points, I never did get laid off, too much bang for the buck, I guess, with my measly bucks being in the denominator). No regrets, good times, since moved on to greener pastures, but this is definitely good news for things in general.

[muskie1]

Well I am new to this forum but have been reading it for sometime. The economic impact from theses jobs will be negligable for a couple reasons I believe. First most of these jobs are not truly new jobs when you look at how many people working in this field for them had already lost their jobs, second hiring new employees at lower than current wages with much lower health care and pension costs will lead to many current employees being offered the take the buy out or leave option.

I think a perfect example of this will be Chrysler. The company has been broken into seperate divisions and brands, car, Ram truck, minivan and Jeep. All of these now have independent management,marketing,engineering and production facilities. By hiring new engineers at great cost savings and pushing out existing employees it will make selling off parts of the company much simpler. If a division is sold it also will eliminate any high paid union jobs and make the deal more attractive.

I believe that Fiats demand to set up a seperate dealer network for the 500 is a indication of their intent to sell off divisions of the company when the price is right. While I am happy to see all the new jobs created by both of these companie I will watch with sadness when the new rounds of buy outs are offered. Sorry to ramble on but I have lost all confidence in both of these companies.