General Motors announces record profit-sharing bonus amid workforce cuts
DETROIT (FOX 2) - 2024 was a big year for General Motors (GM), which the automaker announced may lead to an increase in money for its union workers.
What we know:
In a letter to its shareholders on Tuesday, GM announced their successful 2024 would produce a record-setting profit-sharing bonus of up to $14,500, worth two months' of extra pay for its workers.
Doctor Michael Greiner, Oakland University’s Professor of Management, said it is a bit of a mixed bag of news for members of the UAW.
"If I were the UAW, I’d be kind of having mixed feelings right now because, on the one hand, yes, the members are getting these huge bonuses. On the other hand, as you point out, there have been some pretty substantial layoffs," said Greiner.
The profit-sharing amount is much larger than in the past two years. Meanwhile, like Detroit’s other Big 3, GM did make some cuts to its workforce.
What they're saying:
Greiner said the workforce cuts were made to increase the company’s profitability.
GM CEO Mary Barra says in 2024, the automaker recorded a 9% jump in revenue, doubled its electric vehicle market share, and made more money in China.
"At this particular point, the auto industry in general and GM specifically, is selling a lot of pickup trucks and a lot of SUVs that are gasoline-powered. This really isn’t about the EVs," said WWJ News Radio 950 Reporter Jeff Gilbert.
"What kind of response do you expect to see from Ford and Stellantis?" FOX 2's Brandon Hudson asked.
"I think we can expect some significant profit sharing at Ford; not to the point of General Motors. Probably a little bit less at Stellantis because Stellantis had some sales issues and profitability issues," Gilbert responded.
What's next:
Barra said there’s some uncertainty over the trade, tax, and environmental regulations involving Congress and the new Trump administration.
"GM definitely imports both the goods and parts from both Canada and Mexico, as well as from other parts of the world. And, the fact that there’s talk about tariffs there that would disrupt their entire supply chain," said Greiner.
The Source: FOX 2 talked to Doctor Michael Greiner and WWJ News Radio 950 Reporter Jeff Gilbert.