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GM offering buyouts to 18,000 salaried employees

GM offering buyouts to 18,000 salaried employees

GM reported third-quarter net income of $2.53 billion, or $1.75 a share, compared with a loss a year ago of $2.98 billion, or $2.03 a share.

18,000 employees are reportedly eligible for the offer.

Employees have until November 19 to accept the buyout. GM declined to disclose the number of people it wants to take the buyout offer or the buyout program's expected cost.

"We will evaluate the need to implement after we see the results of the voluntary program and other cost-reduction efforts", the company said. The buyout program will affect about one-third of its workforce. Shares that had been falling since June rose $3.20, to $36.73.

In the third quarter, GM said it was able to raise prices by $900 million in North America, in part because it is launching a new generation of its popular full-size pickup trucks, the Chevrolet Silverado and GMC Sierra.




GM's USA rival, Ford (F), said in early October that it plans to thin the ranks of its salaried workforce by the second quarter of next year. Excluding one-time items, the company made $2.46, far exceeding analyst projections of $1.64 per share, according to a survey by FactSet. The company was resilient in a declining Chinese market, where it posted record third-quarter income of $865.88 million from July through September.

The strong performance came even though GM's global retail sales to individuals dropped 15 percent during the quarter, to 1.98 million vehicles.

GM and rivals Ford Motor Co and Fiat Chrysler Automobiles NV have all in recent weeks forecast substantial hits from steel and aluminum costs driven by tariffs. He was referring to GM's sale of the European Opel and Vauxhall units to France's PSA Group. The company posted a $579.02 million charge as it updated estimated costs for legal claims.

The company strives to continue churning out profits through vehicle sales while, at the same time, investing in new technologies such as electric or autonomous cars.

GM also said its GM Financial business would initiate a $375 million dividend payment to the parent company in the fourth quarter, ahead of the 2019 target. Simplification "will allow us to take significant structure out of the business, whether it's corporate staff, whether it's engineering staff", he said.