GM Buyouts

General Motors has offered buyouts to 74,000 employees in hopes of lowering manufacturing costs in the face of record losses. The buyout packages are worth between $70,000 and $140,000. GM hopes to replace employees with new, lower-paid workers who will not receive as many benefits as current wage earners.

1. Stock symbol: GM (NYSE)
2. Annual revenue (2007): $181 billion
3. Founder: William C. Durant
4. Established: 1908
5. Industry: Automotive manufacturing and distribution
6. Phone: (313) 556-5000
7. Fax: (313) 556-5108
8. HQ: Detroit, Michigan
9. CEO: Rick Wagoner
10. CFO: Ray Young
11. Staff (as of 2007): 284,000

In addition to the buyouts, GM workers eligible for retirement, received pension offers of between $45,000 to $62,500. Many GM employees were also encouraged to take the option of an early retirement. GM looks to manage costs, by buying out expensive veteran workers, and replacing them with cheaper new hires. With average salaries of $14-$16.23 per hour, new hires are significantly less expensive than veteran UAW workers, who average $28.12 per hour.

• CNNMoney.com: GM offers buyouts to all UAW members (February 12, 2008)
  • "The goal is not to reduce headcount but rather to bring in new workers at a lower cost."
• BusinessWeek: Elusive Profits Punish GM (February 12, 2008)
  • "For the year, GM reported a record $38.7 billion loss, which stems mostly from a $39 billion charge taken in the third quarter."
• Forbes.com: GM Limps Toward Recovery (February 12, 2008)
• San Jose Mercury News: GM posts biggest annual US auto loss (February 12, 2008)
• FoxBusiness: International Business Keeps GM Afloat, Barely (February 12, 2008)