Photo: Chevrolet
After punching in the numbers for last year and finding it earned an EBIT-adjusted of $10.8 billion, General Motors found itself in the position to announce a sizeable bonus to be paid to a large number of its U.S.-based employees.
The company said in a statement released last week that 46,500 eligible hourly employees will get an up to $10,750 “profit sharing payment,” as stated in the “contractually negotiated formula between General Motors and the UAW.”
GM says that since 2010, some of its workers got bonuses amounting to $80,500. This most recent payment will be made on February 22.
“When GM delivers good business results, our eligible hourly employees in the U.S. share in the company’s success,” said in a statement Mary Barra, GM’s CEO and chairman.
“To build on our performance, we must continue working together to deliver strong safety, quality and productivity results.”
The practice of sharing profits is not uncommon in the auto industry, but only a few companies in the industry make public these payments. In Europe, Daimler is one of those who do this regularly, and this year announced a bonus of EUR 4,965 for 130,000 employees in Germany.
Back to GM, the carmaker is still struggling to find balance following the severe crisis of the late 2010s. At the end of last year, it announced three of its North American facilities - Ontario, Canada, Detroit and Warren, Ohio – will not be making any cars in 2019, and 15 percent of salaried and salaried contract staff would be laid off.
Shortly after, a $22 million investment in the Spring Hill, Tennessee manufacturing facility was announced, as a means to support the assembly of the 6.2-liter V8 engine, GM uses in some of its cars.
With all these measures in place, combined with the launch of a few new models, GM is hoping 2019 will prove to be one with “strong financial results.”
GM says that since 2010, some of its workers got bonuses amounting to $80,500. This most recent payment will be made on February 22.
“When GM delivers good business results, our eligible hourly employees in the U.S. share in the company’s success,” said in a statement Mary Barra, GM’s CEO and chairman.
“To build on our performance, we must continue working together to deliver strong safety, quality and productivity results.”
The practice of sharing profits is not uncommon in the auto industry, but only a few companies in the industry make public these payments. In Europe, Daimler is one of those who do this regularly, and this year announced a bonus of EUR 4,965 for 130,000 employees in Germany.
Back to GM, the carmaker is still struggling to find balance following the severe crisis of the late 2010s. At the end of last year, it announced three of its North American facilities - Ontario, Canada, Detroit and Warren, Ohio – will not be making any cars in 2019, and 15 percent of salaried and salaried contract staff would be laid off.
Shortly after, a $22 million investment in the Spring Hill, Tennessee manufacturing facility was announced, as a means to support the assembly of the 6.2-liter V8 engine, GM uses in some of its cars.
With all these measures in place, combined with the launch of a few new models, GM is hoping 2019 will prove to be one with “strong financial results.”
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