General Motors Workers Given Cash to Leave
March 26, 2009 by Stephen Kersey
Filed under Business
General Motors continues to try to trim their workforce as the company struggles to survive on federal government bailout money. To get their workers to leave their hourly jobs, GM has offered a combination of incentives. Not only would workers receive a voucher for a $25,000 car, they would also receive $20,000 in cash. Workers could also opt for early retirement.
General Motors (Image: Flickr)
According to wire reports, more than 7,000 of their approximately 62,000 hourly workers decided to leave their job. Workers at Chrysler and Ford have been offered similar incentives to leave.
The biggest two reasons why the United States auto industry is in shambles are the economy and competition. With the economy a mess, less and less people have the money to spend on a new car. Even those with money are having a difficult time setting up financing through the nation’s troubled banks.
Competition is coming from overseas car manufacturers. With less overhead, the foreign auto companies are typically able to offer more for less. As a result, some experts expect that giant companies such as GM might eventually be forced into bankruptcy.
My husband is one of the retires that will recieve this so-called voucher for a new car. He has worked for GM for 33 years and has only purchased GM made vechiles. We have five childern and they only purchase GM vechiles. We were looking forward the the 25000 voucher to purchase a nice car. Little did we know is that we would be taxed on the voucher. This is like getting a 25 cent coupon and only receciving 10 cents off. Plus, we will have to be taxed again on the purchase of the car. We feel like we are being double taxed. first on the voucher and then when you purchase the car. They are taking approximately $9000.00 in taxes on the voucher. Not happy with the voucher!