GM said Tuesday that the offers will save about $1 billion per year in costs, about half of the $2 billion it wants to cut annually by the end of 2024. The company now has about 58,000 salaried workers in the U.S.
The buyouts come at an uncertain time for the auto industry, which is in the midst of a transition from internal combustion to electric vehicles. GM has a goal of selling only electric passenger vehicles by 2035.
The Detroit automaker and its competitors are making huge capital outlays to develop and build new electric vehicles, all while continuing to make cars, trucks and SUVs with gasoline engines. They’re also spending big to get scarce minerals and parts needed for EV batteries.
“The steps we are taking will allow us to maintain momentum, remain agile, and create a more competitive GM,” the company said in a prepared statement.
GM hopes to get the remaining $1 billion in savings by reducing vehicle complexity and expanding use of shared parts on internal combustion and electric vehicles. It also plans to cut spending across the company, including for travel and marketing, the statement said.
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