35,000 to bail on General Motors
It's not often that a company gets excited about 35,000 workers jumping ship via early retirement packages and buyouts, but when that company is General Motors, the bailage is a very good thing. The news means that General Motors is two years ahead of schedule in terms of shrinking its workforce, way ahead of analysts' expectations. What's more is 12,600 workers from Delphi are taking advantage of an attrition plan offered up by the United Auto Workers and General Motors.
This is expected to push GM's annual structural cost reductions from its previously reported $7 billion to $8 billion. Most of the departing workers will leave in 2006, putting GM over its goal of reducing its workforce by 30,000 by January 1, 2007.
[Source: Reuters]
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Reader Comments (Page 1 of 1)
GhostDoggy 4:09PM (6/27/2006)
GM workforce reduction will probably be a very good thing with them since their sales in the minivan sector are toast (as reported moments ago). lol
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Richard Warren 9:11PM (6/27/2006)
This works well for both, those deciding to leave and take the offer and for GM wanting to cut the workforce.
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gbh 10:49PM (6/27/2006)
Oh yeah, it's a great thing.
Less production, fewer workers. Still a boatload of legacy expense. Even with the workers taking the preposterously huge lump sum payday, GM is still going to be on the hook paying benes on many of them. 8-10 BILLION in cash to lay people off. Brilliant!
Oh, the future looks bright indeed. For Toyota and Honda.
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Glenn Laycock 11:48PM (6/27/2006)
and Toyota and Honda are giving us how many high paid jobs in return ... last I heard everyone went nuts online when Toyota said it would hire 4500 over the next few years or something ...
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Meek 10:59AM (6/28/2006)
Honda just announced a new plant in Greensburg, Indiana. There are 2000 jobs that will pay very well for that area. Not to mention the 7 jobs at suppliers for each factory job to support a new plant. And then there is the business going to the local construction companies to build the new plant.
You were saying?
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CR 12:58PM (6/29/2006)
GM's quality should go up as it closes the under performing plants (Dorreville, etc) and lets go of the people staffing those plants. This is definitely a good thing.
Regarding: "Honda just announced a new plant in Greensburg, Indiana. There are 2000 jobs that will pay very well for that area. "
The huge bulk of automotive jobs in the US are still provided by US based companies (i.e., GM and Ford). This is a fact. Here are some numbers to back this up.
Every day, nearly one million Americans earn their living helping GM build and sell cars in the United States.
Over 1.2 million Americans receive health care benefits from General Motors.
The domestic parts content for GM vehicles sold in North America is 82%.
Toyota Motor Company’s domestic parts content is under 36%; Lexus brand is 3.4%.
In the past 5 years, GM has invested over $20 billion in the U.S.
GM’s contribution to the U.S. Gross National Product is about 4 times that of Toyota.
Over 85% of the Total Investments in the U.S. Auto Industry since 1980 have been made by GM, Ford and DCX
Combined, GM, Ford and DCX spend over $16 Billion on Research and Development each year – more than any other industry
Profits earned by domestic manufacturers stay in the United States
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mmac2009 2:55PM (5/20/2009)
Wikipedia GM
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mmac2009 2:57PM (5/20/2009)
Wikipedia GM
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