Economy

General Motors Offers Buyouts Just after Posting Massive Net Profit

General Motors Offers Buyouts Just after Posting Massive Net Profit”

General Motors followed up on a strong earnings report by offering company buyouts to tens of thousands of salaried workers.

The company also gave a more optimistic forecast for the full year, saying it expects pretax profits at the high end of its previous guidance of $5.80 to $6.20 per share as it rolls out the new pickups and does its best to battle higher commodity costs.

Morrissey wouldn't say if GM will begin to lay employees off if too few workers take voluntary buyouts. Terms of the buyouts weren't released.

GM has 18,000 salaried employees who have 12 years or more experience.

"We've been on a journey to transform the company, both in how we operate the business and in how we lead in the future of mobility".

"We are doing this while our company and economy are strong", GM told Automotive News in an emailed statement.

The Detroit automaker had previously promised investors it would cut $6.5 billion in costs this year, and the buyouts would add to that total, a company spokesman said on Wednesday. She also noted that the company's stock price is still stuck near the $33 a share IPO price in 2010 after a bankruptcy restructuring following the 2009 USA recession. The Trump administration has imposed 10 per cent tariffs on imported aluminum and 25 per cent on steel.

GM has a global salaried workforce of 77,000 people, according to its 2017 annual filing.

The strong profit from GM's China joint venture came even with a budding tariff war with the USA and uncertainty over sales in the world's largest auto market.

The company has 50,000 salaried workers in North America. In addition, GM in June ended the second shift at its Lordstown, Ohio assembly plant, cutting 1,500 jobs.

GM's USA rival Ford said in early October it plans to thin the ranks of its salaried workforce by the second quarter of next year. Ford has not provided specifics on how many jobs will be cut or when.

GM International posted an operating profit of $139 million in the quarter, driven by record equity income in China of about $500 million despite the slowdown there. Simplification "will allow us to take significant structure out of the business, whether it's corporate staff, whether it's engineering staff", he said on an earnings conference call.



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