DETROIT — General Motors Co. on Wednesday stepped up efforts to cut costs in response to tariff and market pressures, even as it reported a third-quarter profit that topped Wall Street expectations. The No. 1 U.S. automaker said it is offering buyouts to salaried employees with 12 years or more of service. It also will not rule out layoffs.
In an email to workers, GM’s CEO Mary Barra said: “Our structural costs are not aligned with the market realities.”
News of the buyout offer was welcomed on Wall Street. GM shares jumped more than 8 percent to $36.34, their highest in almost six weeks. The Detroit automaker had previously promised investors it would cut $6.5 billion in costs this year, and the buyouts would add to that, a company spokesman said.
In a separate statement the company said that it would consider layoffs after it sees the impact of the buyouts and other cost-cutting efforts.
The economy is thriving now, but in the long run, manufacturers may be aware that the US economy isn’t conducive to labor-intensive industries. The goal of tariffs was to keep business in the U.S., but it’s ended up as protectionist, driving up production costs.