I read they are doing it since they want to shift to autonomous cars or something…
It’s not really “bad” economic news either. I think they are just trying to shed some fat in non-essential areas and improve in areas of need like any huge decently run company would - maybe GM finally learned it’s lesson!
GM is OFFERING buyouts to 18,000 workers. We don’t know if they want to reduce the workforce by 18, 180, 1800, or 18000.
And they are also still hiring. https://search-careers.gm.com/jobsatgm
Missing the point here. The tariffs are going to cause a sizeable downturn in auto sales.
How is that the point? What is your source? That article references tariffs but provides absolutely no supporting evidence. Nor does it say anything about auto sales.
Rising interest rates are going to have a substantially larger effect on auto sales than “the tariffs”.
It’s going to be a snowball effect. Rising rates, tariffs, and everything else that will lead to reduced consumer spending - it will eventually just spiral down to a recession. We’re slowing coming off of one of the strongest and longest economic booms in a century.
This happens all the time, the bean counters figure out it’s cheaper to get rid of people on the high end of the scale and replace them with people at the bottom, plus maybe cut the benefits, or not even replace them. At my work new hires get less of a pension and less leave time, plus they can’t retire as soon.
Which “tariffs” are we talking about? Because the answer to that will dictate whether or not that adversly affects automakers; along with which automakers and in what location the autos are made and then sold…
e.g. if euro tariffs on US produced vehicles go down, then that’s positive for US made autos…if US tariffs go up on Canadian made ‘domestics,’ then that’s good and/or bad depending on who we are talking about. Bad for a US automaker assembling vehicles in Canada for US market…good for US auto workers…
In any case generic “tariffs” are maybe good…maybe bad.
Strongest? We never got 3% annual growth gdp since 2007 probably. Man you guys must be too young to think this anaemic growth is strong when you consider 0 rates, fed purchases of mbs, and stimulus spending. Take those away and might as well call it 0 growth.
The GM story is obviously fake news- the economy is the “strongest” its ever been in the history of the world because the President said so. If you don’t believe me, just turn on your TV or radio and he will tell you himself. If you’re not raking up piles of cash that are raining down on your yard every day, you must be a loser.
Trump Derangement Syndrome. Shouting irrelevant, asinine nonsense.
The story from GM insiders is that they’re hoarding cash and canceling a lot of CapEx even though their earnings are strong. Stay tuned. I suspect they’re going to make a big move.
Haha. You’re joking, right? Good one.
Yes, kind of annoying hearing it over and over because it is not true really. However, it is doing better and we might get 3% gdp growth finally. At what cost I am not sure as deficits bother me but with 12 aircraft carrier groups and 900 bases worldwide I hope our leaders have the foresight to keep $ the main trading currency. In addition, you have constant raise in rates and fed unwinding of their balance sheet that the market has to absorb. So technically it is stronger than previous 8 years.
Next crisis will be short lived in my opinion, kind of LTC or a flash crash type of thing, more regional than national. Housing is high but subprime is not like it used to be and our savings rate has gone up so a lot more debt can be absorbed by the masses.
The glorious state of the economy certainly seems to be overblown despite the economic indicators we have come to rely on. Now that the stock market has taken a major dump with most if not all gains realized in 2018 vaporized in a week or so, what does 3% GDP mean for the average Joe? Living in a major city, it looks like unemployment is down because everybody is delivering groceries, shuffling boxes for Amazon or driving an Uber. It seems we now have entire generations that are learning to make their living by stringing together 2-3 really crappy jobs. Is this “winning” ??
Qe1, qe2, qe3, qefloor. Precious metals are very underpriced right now.
Hey man same economic indicators we used to praise Obama, Trump using them now. Whats fair is fair. If you learn a trade you making very good money. Plumber, electrican, hvac, etc. Economy is not healthy 100% but a lot better than the rest of the world. We lost 2018 gains after e nice gain since election. Emerging markets are in deep negative territory. We doing good for now. However, deficits will matter and we will have to pay up at some point. Too bad the middle class will suffer most from changes in medicare and social security.
Maybe. Stength of the $ due to rates is a factor. We have some the widest spread between us treasuries and german bunds. Its strange times for sure. Fed will have to keep rates stable for now in my opinion.
Agreed, all these Uber and Lyft drivers out there are under employed although every time I ride in one they tell me that they like to work for themselves… Recently I saw a startup recruiting, it’s business model is to advance payment to people that are contractors by taking a cut of their pay. Seems like another form of pay day loan.
We will be spending more on interest on the debt than the military soon.