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Old Today, 10:15 AM
 
9,162 posts, read 5,687,126 times
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GM offers 18k workers buyouts and eliminates thousands of contract staff.
https://www.usatoday.com/story/money...ts/1917501002/


https://www.nbcnews.com/business/aut...d-cars-n806806
I'm pretty sure this is all due to the turn towards EV and Autonomous. I guess it just doesn't make sense to me for the sudden and drastic change. Politically , I get it, a company has to stay at the forefront of this or it will be left behind and hiring young talent will be impossible. The thing is , GM's profits come from full size trucks, SUV's and Cadillac. To suddenly change direction to something that is costly and not really in demand doesn't make sense. Latest buzz I've heard was GM will be more of a "tech" company instead of an automotive company. I work in the industry and in the trade websites all I see is EV and Autonomous being shoved in our faces. The first 4 major headlines on a site I go to was related to it.


Now GM is also collaborating with Honda on this. Although This is a win for GM. Honda invests cash, and GM gives a bunch of E & D work to them while cutting head count. I know entire groups have lost work due to it going to Honda.
https://www.motortrend.com/news/hond...-car-division/


While I have no problem with EV's and would love to have one, I'd also have my 3/4 ton fossil fuel burning truck as well.
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Old Today, 10:20 AM
 
749 posts, read 262,780 times
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government bailout again?
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Old Today, 10:31 AM
 
9,162 posts, read 5,687,126 times
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Quote:
Originally Posted by turkeydance View Post
government bailout again?

On the tail end of an exceptional 3rd quarter ? $2.5 billion in profit, not to mention the $2.75 billion investment from Honda ? I doubt it, there is something going on for sure though.
https://www.cnbc.com/2018/10/31/gene...s-q3-2018.html
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Old Today, 11:03 AM
 
Location: San Ramon, Seattle, Anchorage, Reykjavik
1,655 posts, read 702,835 times
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I think it has just as much to do with the coming downturn in new car sales. Given the cost of new cars, the fact that interest rates are going up, and the fact that used cars are much more reliable than in the past, GM is getting ahead of the curve and doing targeted reductions in force to prepare for the future.

The future of EVs is also playing a part. No matter what the current administration or congress says, big business everywhere in the world knows that fossil fuels are not the future of personal transportation. They are retooling and reskilling to be prepared for the next.
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Old Today, 11:06 AM
 
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We have been hearing about the transition to autonomous (Self drive) for awhile now, lots of people either dont want to believe it or dont want to accept it...IT IS coming though.

It really reminds me of the days when the first motorized cars came out, I imagine there were LOTS of people that had a problem with that, and wanted to stick with horse and buggy...but here 100+ yrs later, even though millions of lives have been lost as a result to motor vehicle accidents, NO ONE is calling to go back to horse and buggy, so all the deaths were worth it in the big picture.
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Old Today, 11:07 AM
 
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Quote:
Originally Posted by turkeydance View Post
government bailout again?
Preparing so that they can avoid one.
It's also better to be ahead of the EV curve than behind it.
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Old Today, 11:12 AM
 
12,753 posts, read 12,142,147 times
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Quote:
Originally Posted by rstevens62 View Post
We have been hearing about the transition to autonomous (Self drive) for awhile now, lots of people either dont want to believe it or dont want to accept it...IT IS coming though.

It really reminds me of the days when the first motorized cars came out, I imagine there were LOTS of people that had a problem with that, and wanted to stick with horse and buggy...but here 100+ yrs later, even though millions of lives have been lost as a result to motor vehicle accidents, NO ONE is calling to go back to horse and buggy, so all the deaths were worth it in the big picture.
I been hearing "is is a few years away" for over ten years now. Same with the electric car thing.

The difference between the horse and car though is that the car was vastly superior to the horse, and continued to improve so until horses became more of a hobby than a tool. Perhaps EVs will get there one day, right now they are not as there are numerous gas options that are better than even the best EV, and at a cheaper price point.
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Old Today, 11:59 AM
 
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That is just it, we keep "being told" that EV and Autonomous is coming, but I don't hear too many asking for it.

I agree , a company has to stay ahead of the curve and it cost a lot of money to do that but it also seems like a huge risk as well.
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Old Today, 12:08 PM
 
682 posts, read 1,222,425 times
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Quote:
Originally Posted by boxus View Post
I been hearing "is is a few years away" for over ten years now. Same with the electric car thing.

The difference between the horse and car though is that the car was vastly superior to the horse, and continued to improve so until horses became more of a hobby than a tool. Perhaps EVs will get there one day, right now they are not as there are numerous gas options that are better than even the best EV, and at a cheaper price point.

Yes, but even if it is another 10-15 years away (and it isn't), with the lead times in the automotive industry, those that aren't pivoting now (or soon) will be left behind.


In my opinion, in addition to the autonomous thing, what the manufacturers are preparing for is the sharing economy (that the autonomous thing will rapidly accelerate) The new generations, on average, have much less interest in owning and maintaining a car than previous ones and find it easier to open an app to get an Uber. That will be even more so when you can get a Google/Waymo car that drives itself.




While the need for work trucks and vehicles for those in rural areas and such things won't go away, general car ownership (at least in this country and Easter Europe) will decrease a good amount once autonomous ride sharing is really here.
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Old Today, 12:26 PM
 
9,162 posts, read 5,687,126 times
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Quote:
Originally Posted by z28lt1 View Post
Yes, but even if it is another 10-15 years away (and it isn't), with the lead times in the automotive industry, those that aren't pivoting now (or soon) will be left behind.


In my opinion, in addition to the autonomous thing, what the manufacturers are preparing for is the sharing economy (that the autonomous thing will rapidly accelerate) The new generations, on average, have much less interest in owning and maintaining a car than previous ones and find it easier to open an app to get an Uber. That will be even more so when you can get a Google/Waymo car that drives itself.




While the need for work trucks and vehicles for those in rural areas and such things won't go away, general car ownership (at least in this country and Easter Europe) will decrease a good amount once autonomous ride sharing is really here.

Here is a good read. They estimate that by 2045 , 90% of the vehicles will be autonomous. Glad I'll most likely not be around for that...


https://www.fastcompany.com/90146067...-change-cities
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