GM offers buybacks to 18,000 employees

General Motors will try to reduce costs by offering repurchases to approximately 18,000 white-collar workers in North America.

The company made the offer Wednesday to employees of 12 years and over service.

The announcement was made the same day that GM announced a profit of $ 2.5 billion in the third quarter. In a prepared statement, the company says that while it is doing well, it wants to continue to reduce costs while the company and the economy are strong.

The auto industry faces imminent problems, such as slowing sales in the United States and China, and rising prices for steel and aluminum due to US tariffs.

GM would not disclose the terms of the buy-back offers. The company employs approximately 50,000 people in the United States, Canada and Mexico.

Company spokesman Patrick Morrissey did not say whether GM was trying to reach a target number of employees. Those to whom the offer was made have until November 19 to make a decision and will leave the company by the end of the year, he said. .

"Despite the progress we have made, we are taking proactive steps to move forward by accelerating our efforts to improve overall business performance. We do it while our business and economy are strong. The voluntary departure program for eligible salaried employees is an example of our efforts to improve profitability, "said the company.

GM has long talked about cutting costs in anticipation of an economic downturn. The company strives to continue to generate profits through the sale of vehicles while investing in new technologies such as electric cars or autonomous cars.

Savings on workforce reductions would come in 2019, after the start of redemptions.

Morrissey would not say if GM will start firing employees if too few of them take voluntary buyouts.

Most of GM's employees are located in the United States, mainly in Michigan, at Detroit's headquarters, in a huge technical center in the suburbs of Warren, at a test center near Milford, and in a central location. development of engines and transmissions at Pontiac.