Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[GM offers buyouts to every one of its hourly workers]]>http://www.autoblog.com/2009/02/04/gm-offers-buyouts-to-every-one-of-its-hourly-workers/http://www.autoblog.com/2009/02/04/gm-offers-buyouts-to-every-one-of-its-hourly-workers/http://www.autoblog.com/2009/02/04/gm-offers-buyouts-to-every-one-of-its-hourly-workers/#commentsFiled under: , ,



Yesterday, General Motors announced plans for another round of buyouts. Initial reports said the automaker would offer workers 50 years of age and older $20,000 cash and another $25,000 voucher towards the purchase of a GM vehicle. However, the Associated Press is now reporting that GM will offer every one of its hourly workers the opportunity to expand their career options. A UAW official confirms to the AP that the offer will be a one-time cash payout as well as a car-purchase voucher, but would not discuss specific amounts.

The same official said the buyout details should be announced by GM on Friday and employees would have until March 23 to stay with the company or begin looking at ways to make that $20k last until retirement. Takers of the buyouts would have until April 1 to clear out their lockers.

[Source: AP]

GM offers buyouts to every one of its hourly workers originally appeared on Autoblog on Wed, 04 Feb 2009 07:28:00 EST. Please see our terms for use of feeds.

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General Motors reported its second quarter earnings this morning, and the news was predictably grim. The General lost $15.5B in the quarter, as the Detroit Automaker continues to struggle with brutal market conditions and the costs associated with strikes and downsizing. Among the losses is a $4B hit from automotive operations, as stymied truck sales resulted in an 18% drop in revenue to $38B. GM's credit arm lost another $2.5B from high loan default rates and huge losses from truck and SUV lease residuals.

Another $9.1B came from one-time charges associated with GM's massive restructuring and the American Axle strike. Among the charges was a $3.3B write-down to pay for buyouts to the 19,000 UAW members that left by July. Overall, GM lost a staggering $27.33 per share in the quarter, which is even more amazing considering the General's stock is trading at about $10 per share. Among the actions GM took this week to help stem its bleeding balance sheet was ending all leasing in Canada, raising lease costs here in the States, and the announcement of 5,000 white-collar job cuts.

We're no industry analysts and we don't have any insights into the General's balance sheet, but a $15.5B Q2 loss and four straight quarters of red ink doesn't sound good at all. New fuel efficient products like the Chevy Cruze and Volt can't come soon enough, though it will be an even bigger challenge trying to make money off these small and ultra-fuel efficient cars.

[Source: Detroit News]

GM loses $15.5B in Q2 originally appeared on Autoblog on Fri, 01 Aug 2008 09:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>accountingbuyoutsgeneral motorsGeneralMotorsGMQ2 lossesQ2LossesunionFri, 01 Aug 2008 09:59:00 EST<![CDATA[Ford offers up more buyouts to hourly workers]]>http://www.autoblog.com/2008/07/22/ford-offers-up-more-buyouts-to-hourly-workers/http://www.autoblog.com/2008/07/22/ford-offers-up-more-buyouts-to-hourly-workers/http://www.autoblog.com/2008/07/22/ford-offers-up-more-buyouts-to-hourly-workers/#commentsFiled under: ,

Ford is hoping to continue the reduction of both the number of vehicles the automaker will produce and, correspondingly, its hourly blue-collar workforce. In order to make good with the UAW, the same buyout packages available last year are being extended to these unionized workers. The packages have not changed since they were offered to Ford employees in Kentucky in June of 2007. These latest buyout announcements involve workers from plants in either Michigan or Ohio, a further blow to the already weakened economies in these two auto-heavy states.

Earlier this year, Ford said it was hoping for another 9,000 hourly workers to take buyouts. Between 2006 and 2007, a total of 33,600 union workers accepted either buyout packages or early retirement packages, a huge percentage of Ford's total employees. At this rate, we wonder how many UAW workers Ford will have left after it's all said and done.

[Source: The Detroit News]

Ford offers up more buyouts to hourly workers originally appeared on Autoblog on Tue, 22 Jul 2008 08:35:00 EST. Please see our terms for use of feeds.

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More than one-fourth of GM's 74,000 hourly employees are going to grab the loot and skedaddle. Earlier this year, UAW President Ron Gettlefinger estimated that 15,000 would put their hands out, but another couple thousand decided to hop on the General's money train. The workers are expected to finish their employment by July 1. GM's most recent deal with the UAW means it can replace those folks with lower wage workers and save itself a bundle on payroll. And that will make the job of saving itself that much easier.

[Source: Automotive News, sub req'd]

GM says 17,398 workers took buyout originally appeared on Autoblog on Fri, 20 Jun 2008 08:01:00 EST. Please see our terms for use of feeds.

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General Motors announced today that approximately 19,000 hourly employees have opted to leave the automaker's ranks in exchange for a buyout offer and retirement incentives. The offer was extended to 74,000 UAW workers in an attempt to swap out highly paid long-termers with lower-paid new employees as the General realigns its financial situation. Workers have had months to make the decision, but GM is giving them another week to rethink their choice. Employees that have made the final decision will leave no later than July 1, 2008. The effect of nearly 19,000 hourly employees taking buyouts apparently wasn't enough to right the S.S. General Motors as the massive automaker just announced that a new restructuring plan with more buyouts and layoffs is on its way.

[Source: GM]

Continue reading Nearly 19,000 hourly workers take buyout from GM

Nearly 19,000 hourly workers take buyout from GM originally appeared on Autoblog on Thu, 29 May 2008 14:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>buyoutsgeneral motorsGeneralMotorsuawunited auto workersUnitedAutoWorkersThu, 29 May 2008 14:31:00 EST<![CDATA[Ford readying bonuses for entire workforce]]>http://www.autoblog.com/2008/02/20/ford-readying-bonuses-for-entire-workforce/http://www.autoblog.com/2008/02/20/ford-readying-bonuses-for-entire-workforce/http://www.autoblog.com/2008/02/20/ford-readying-bonuses-for-entire-workforce/#commentsFiled under: , ,

Ford is making significant strides to turn its North American operations around. In 2006, it was able to cut almost 34,000 workers from its payroll after one round of buyouts and is looking to cut even more of its workforce this year through another payoff program that's being offered to 54,000 UAW-represented workers.

While it's mortgaged everything in its arsenal to keep afloat through the tough times, FoMoCo is planning to hand out bonuses this year, as it did last March.

According to the Freep, the bonus plan is sitting on the table in front of Ford's Board of Directors, awaiting approval and it will likely cover some 23,700 salaried and 64,000 hourly workers in North America. Most salaried employees walked home with somewhere between $300 and $800 last year, with higher-ups paid "several thousand dollars to $15,000 or more."

While we understand that keeping moral high in these troubling times is important, with Ford posting a net loss of $2.7 billion last year, it seems that the major "bonus" for workers is that they are still employed at the Blue Oval.

[Sources: Detroit Free Press, Reuters]

Ford readying bonuses for entire workforce originally appeared on Autoblog on Wed, 20 Feb 2008 16:25:00 EST. Please see our terms for use of feeds.

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Over 2006 and 2007, Ford lost $15.3 billion. Over that same time and in light of those losses, the company also shed 33,600 union workers through buyouts and early retirement. Still working through the uphill part of the turnaround, Ford has announced it wants to eliminate another 8,000 to 9,000 factory jobs through buyouts.

If 8,000 workers end up leaving, that's almost 12 percent of Ford's current workforce walking out the door. They'll leave with benefits and a buyout that ranges from $50,000 to $70,000 depending on whether the position is a skilled trade. While it might seem like a lot of money, the point is that with the new labor agreement, Ford can hire new workers -- when the time comes -- for $26 to $31, instead of the $60-per-hour it pays now. The UAW figures the salary change could save Ford $1,000 per car.

Although 8,000 buyouts is Ford's target, the company is willing to accept more workers leaving. The offer has been extended to workers at four shuttered factories, and will be expanded next week to others. Those who don't want buyouts can be transferred to another factory. And if they don't accept the buyout or relocation, then they "will be placed on a 'no-pay, no-benefit leave,'" which sounds a lot less appealing than a 5-figure check.

[Source: Bloomberg]

Ford to shed another 9,000 plant jobs originally appeared on Autoblog on Mon, 11 Feb 2008 14:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutsearly retirementEarlyRetirementfordford factoriesford plantsford restructuringford turnaroundFordFactoriesFordPlantsFordRestructuringFordTurnarounduawunionsMon, 11 Feb 2008 14:02:00 EST<![CDATA[More buyouts for Chrysler plant workers]]>http://www.autoblog.com/2008/01/09/more-buyouts-for-chrysler-plant-workers/http://www.autoblog.com/2008/01/09/more-buyouts-for-chrysler-plant-workers/http://www.autoblog.com/2008/01/09/more-buyouts-for-chrysler-plant-workers/#commentsFiled under: , ,

Car sales in the US are down, which is bad news for everybody in the industry, but Chrysler is among the automakers struggling most. To adjust factory production to lower demand, the Pentastar was preparing to lay off up to 5,000 workers when it cut shifts at several plants. Instead, to keep good will with the UAW while also slimming down the blue-collar payroll, the Auburn Hills, MI-based automaker is offering buyouts to union members from Jefferson North, Belvidere Assembly Plant in Illinois, Toledo North Assembly, Sterling Heights Assembly, and Brampton Assembly in Ontario.

According to the Detroit News, UAW workers with at least 30 years on the job will get $70,000, plus full retirement benefits, and those with at least one year of service can opt to receive a $100,000 lump sum buyout option with six months of health care. Chrysler is hoping the packages will delete all 5,000 jobs through attrition alone, which will save the automaker from paying laid-off workers 90-percent of their wage for 48 weeks. The packages are part of Chrysler's plan to shed 8,500 to 10,000 blue collar jobs as part of the company's latest restructuring.

[Source: Detroit News]

More buyouts for Chrysler plant workers originally appeared on Autoblog on Wed, 09 Jan 2008 17:34:00 EST. Please see our terms for use of feeds.

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The Detroit Free Press is reporting today that since Ford began offering buyouts and early retirement offers to its hourly employees last year, about 27,000 have accepted and left the company. Since the offer was made last October to hourly workers at all of Ford's plants in North America, about 8,000 before the ball dropped on 2007 and 19,000 so far this year. Fortunately for Ford, about half were not eligible for early retirement, which means the automaker takes on less long-term retiree health care liability. Some of the workers who clocked out early include employees of Visteon plants, as well.

[Source: Detroit Free Press]

27,000 Ford workers have officially left the building originally appeared on Autoblog on Thu, 14 Jun 2007 16:12:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutsearly retirementEarlyRetirementexpire-images:2008-6-13fordford workersFordWorkersturn aroundTurnAroundway forwardWayForwardThu, 14 Jun 2007 16:12:00 EST<![CDATA[Chrysler buyouts hitting snags]]>http://www.autoblog.com/2007/06/03/chrysler-buyouts-hitting-snags/http://www.autoblog.com/2007/06/03/chrysler-buyouts-hitting-snags/http://www.autoblog.com/2007/06/03/chrysler-buyouts-hitting-snags/#commentsFiled under: ,

When Ford and General Motors offered buyouts to their employees over the last two years, they each got more takers than they were looking for. Those companies chose to let most of the applicants have the buyouts and then hired temporary workers to fill the gap. This year, it was Chrysler's turn to shed another 13,000 employees and they're taking a different tack.

They offered two different deals based on the employees' age. Older employees near retirement age could get a $70,000 lump sum payment with lifetime health insurance. The second package is for younger employees, who can take a $100,000 lump sum with no health insurance. About 4,560 employees have been approved so far, mostly for the $70,000 package. The problem is the lower-seniority workers. Chrysler doesn't want to be in the position of hiring temporary workers and is taking the applicants on a case by case basis so they don't eliminate too many jobs.

Many of the younger workers who want to leave have already found new jobs elsewhere and are now stuck while they wait for Chrysler to decide if they can get their money. So far, Chrysler isn't giving a target date for when decisions will be made and that's leading to a lot of frustration. Chrysler may want to get this situation sorted quickly before it backfires on them.

[Source: Detroit News]

Chrysler buyouts hitting snags originally appeared on Autoblog on Sun, 03 Jun 2007 14:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutsSun, 03 Jun 2007 14:03:00 EST<![CDATA[Whither the white collar: Ford set to buyout 10,000 salaried workers]]>http://www.autoblog.com/2006/12/12/wither-the-white-collar-ford-set-to-buyout-10-000-salaried-work/http://www.autoblog.com/2006/12/12/wither-the-white-collar-ford-set-to-buyout-10-000-salaried-work/http://www.autoblog.com/2006/12/12/wither-the-white-collar-ford-set-to-buyout-10-000-salaried-work/#commentsFiled under: ,

Here come the pink slips for the white-collar guys and gals at Ford. And to speed up the exodus, 6 preprogrammed tags have been added to those termination notices. Actually, Ford Motor Co. is starting to offer buyouts to many of its salaried employees to help trim its U.S. payroll. As many as 85 percent of each department's workers will get the option of the buyout. Ford is looking to rid itself of 10,000 of its 38,500 salaried workers by 2008.

If the buyouts don't produce big enough cuts, layoffs will be used. Ford already got 38,000 hourly workers to sign up for buyout programs earlier this year. This new program was started in October. They started making the offers to salaried workers and senior managers and are now going after lower level managers and non-management workers.

Follow the jump for more details.

[Source: The Detroit News]

Continue reading Whither the white collar: Ford set to buyout 10,000 salaried workers

Whither the white collar: Ford set to buyout 10,000 salaried workers originally appeared on Autoblog on Tue, 12 Dec 2006 10:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutsFord Motor CoFordMotorColayoffsTue, 12 Dec 2006 10:02:00 EST<![CDATA[Ford announces 38,000 workers accepted buyout so far]]>http://www.autoblog.com/2006/11/29/ford-announces-38-000-workers-accepted-buyout-so-far/http://www.autoblog.com/2006/11/29/ford-announces-38-000-workers-accepted-buyout-so-far/http://www.autoblog.com/2006/11/29/ford-announces-38-000-workers-accepted-buyout-so-far/#commentsFiled under:

Ford LogoAs Ford works to restructure itself with the goal of becoming more competitive in the marketplace, the automaker has announced that 38,000 UAW-represented hourly workers have accepted buyout packages so far. Roughly 30,000 of those came through the recent open enrollment period, when a variety of packages were offered to employees based on their employment circumstances. Retirement-eligible employees were offered traditional packages, for example, while employes with shorter tenure were presented with options that were more non-traditional in nature.

Ford CEO Alan Mullaly acknowledged that the decision to accept a package must have been difficult for many of the employees who did so, and was quick to thank the UAW for working closely with Ford on the development of the various packages offered, citing it as an example of the automaker and the union's longstanding ability to work in concert in the interest of strengthening the company's business.

The buyout acceptances can be rescinded by employees up until the date they are scheduled to leave the company. Those who do accept packages will begin leaving the company in January 2007/ The voluntary separarions will continue through the year, with a goal of september 2007 set for completion.

You can read Ford's full press release after the jump.

[Source: Ford]

Continue reading Ford announces 38,000 workers accepted buyout so far

Ford announces 38,000 workers accepted buyout so far originally appeared on Autoblog on Wed, 29 Nov 2006 10:38:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>buyout packageBuyoutPackagebuyoutsuawuaw hourly-employeesUawHourly-employeesWed, 29 Nov 2006 10:38:00 EST<![CDATA[Ford buyouts start next week]]>http://www.autoblog.com/2006/10/10/ford-buyouts-start-next-week/http://www.autoblog.com/2006/10/10/ford-buyouts-start-next-week/http://www.autoblog.com/2006/10/10/ford-buyouts-start-next-week/#commentsFiled under: , ,

Ford Motor announced Monday that it will make its planned buyout package available to all of its 75,000 hourly workers starting October 16.

The company-wide plan follows previous efforts to cut jobs on a plant-by-plant basis, as the company shoots for its goal of cutting 30,000 hourly jobs by the end of 2008. Both salaried and blue collar jobs are on the block, as the company starts briefing employees next Tuesday on a variety of buyout packages that start taking effect next year.

Ford plans to close 16 factories as it restructures to adapt to the realities of decreasing market share and a stagnant Morth American auto market.

[Source: CNN/Money]

Ford buyouts start next week originally appeared on Autoblog on Tue, 10 Oct 2006 06:52:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutsrestructuringTue, 10 Oct 2006 06:52:00 EST<![CDATA[Acquisition and mergers and joint ventures, oh my!]]>http://www.autoblog.com/2006/07/26/acquisition-and-mergers-and-joint-ventures-oh-my/http://www.autoblog.com/2006/07/26/acquisition-and-mergers-and-joint-ventures-oh-my/http://www.autoblog.com/2006/07/26/acquisition-and-mergers-and-joint-ventures-oh-my/#commentsFiled under: ,

Forbes automotive columnist Jerry Flint provides a history lesson of various automotive couplings and even triads to illustrate that while a few have been beneficial to one or (rarely) all parties, most fall flat on their faces. None, however, are easy for any of the parties, successful or not.

Successful mergers, buyouts, partnerships, and other combos include General Motors' Daewoo purchase and its acquisition of the HUMMER name. Chryslers' purchase of American Motors (AMC) that not only gave Jeep to the automaker but a top notch engineering team. Interestingly, Renault sold its controlling shares of AMC because its French unions couldn't stand the thought of francs bolstering American products. Sound familiar, anyone?

But successful combinations are scarce. Flint discusses DaimlerChrysler's alliance with Hyundai Motors and, earlier, Mitsubishi, both of which fell apart. Ford nearly lost the Brazilian market with its ill-fated Volkswagen alliance in the "AutoLatina" venture. And Flint provides a litany on GM's failed alliances, from Fiat to Suzuki to Isuzu, and the cost of each to the company.

Flint isn't necessarily against mergers or alliances, he just points out that none of them, no matter how successful they are eventually, are ever easy.

[Source: Forbes]

Acquisition and mergers and joint ventures, oh my! originally appeared on Autoblog on Wed, 26 Jul 2006 12:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acquisitionsallianceautomotivebuyoutshistoryJerry FlintJerryFlintmergersopinionpartnershipsWed, 26 Jul 2006 12:04:00 EST<![CDATA[35,000 to bail on General Motors]]>http://www.autoblog.com/2006/06/27/35-000-to-bail-on-general-motors/http://www.autoblog.com/2006/06/27/35-000-to-bail-on-general-motors/http://www.autoblog.com/2006/06/27/35-000-to-bail-on-general-motors/#commentsFiled under: , , ,

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]

 

35,000 to bail on General Motors originally appeared on Autoblog on Tue, 27 Jun 2006 14:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>buyoutsdelphigeneral motorsGeneralMotorsmanufacturing jobsManufacturingJobsTue, 27 Jun 2006 14:59:00 EST<![CDATA[Delphi reaches buyout agreement with second-largest union]]>http://www.autoblog.com/2006/06/17/delphi-reaches-buyout-agreement-with-second-largest-union/http://www.autoblog.com/2006/06/17/delphi-reaches-buyout-agreement-with-second-largest-union/http://www.autoblog.com/2006/06/17/delphi-reaches-buyout-agreement-with-second-largest-union/#commentsFiled under: ,

Delphi has announced the successful negotiation of a buyout deal for its employees who are represented by the International Union of Electrical Workers (IUEW). Approximately 8,000 employees are eligible to participate, and will receive either lump-sum payments of $35,000 or packages ranging from $40,000 to $140,000.

Delphi's former parent company General Motors will be footing the bill for these buyouts, which will be in the neighborhood of several hundred million dollars. Additionally, up to 3,200 IUEW workers will be able to transfer to GM for retirement purposes.

[Source: Money/CNN]

Delphi reaches buyout agreement with second-largest union originally appeared on Autoblog on Sat, 17 Jun 2006 21:40:00 EST. Please see our terms for use of feeds.

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