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General Motors (GM) to Dismiss 1,300 Workers in Michigan
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General Motors Company (GM - Free Report) is set to lay off 1,300 workers in two of its Michigan plants as it discontinues the production of Chevrolet Camaro and Chevrolet Bolt.
Among 1,300 workers, 945 are employed at Orion Assembly, which manufactures Chevrolet Bolt models. The production of the models is scheduled to end on Dec 18, 2023, but the layoff will not commence until Jan 1, 2024.
GM plans to retool Orian to manufacture electric trucks, including Chevrolet Silverado EV and GMC Sierra EV. The plant will be ready for production in late 2025.
The automaker plans to dismiss 369 workers from the Lansing Grand River Assembly/Stamping plant, which currently produces the Chevrolet Camaro. Due to the end of Camaro production, 350 workers will be affected starting from Jan 2, 2024. The impacted workers will have job opportunities per the United Auto Workers & General Motors National Agreement.
Per Kevin Kelly, senior director for corporate news relations of GM, the automaker will extend opportunities to affected Orion workers at other Michigan plants. All other salaried employees will be placed in different internal roles.
Amidst UAW strike-related disruptions, GM withdrew and later reinstated profit guidance, projecting a year-over-year decline due to labor issues. The company initially aimed for adjusted EBIT in the $12-$14 billion range for this year, down from $14.5 billion in 2022. However, it now expects 2023 adjusted EBIT within $11.7-$12.7 billion due to costs associated with the UAW strike.
The new contract with UAW will raise labor costs significantly. GM is also retracting its near-term targets for electric vehicles due to slower-than-expected demand.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2024 has increased 2 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings indicates year-over-year growth of 34.2% and 74.7%, respectively. The EPS estimates for 2023 and 2024 have increased 59 cents and 55 cents, respectively, in the past 60 days.
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General Motors (GM) to Dismiss 1,300 Workers in Michigan
General Motors Company (GM - Free Report) is set to lay off 1,300 workers in two of its Michigan plants as it discontinues the production of Chevrolet Camaro and Chevrolet Bolt.
Among 1,300 workers, 945 are employed at Orion Assembly, which manufactures Chevrolet Bolt models. The production of the models is scheduled to end on Dec 18, 2023, but the layoff will not commence until Jan 1, 2024.
GM plans to retool Orian to manufacture electric trucks, including Chevrolet Silverado EV and GMC Sierra EV. The plant will be ready for production in late 2025.
The automaker plans to dismiss 369 workers from the Lansing Grand River Assembly/Stamping plant, which currently produces the Chevrolet Camaro. Due to the end of Camaro production, 350 workers will be affected starting from Jan 2, 2024. The impacted workers will have job opportunities per the United Auto Workers & General Motors National Agreement.
Per Kevin Kelly, senior director for corporate news relations of GM, the automaker will extend opportunities to affected Orion workers at other Michigan plants. All other salaried employees will be placed in different internal roles.
Amidst UAW strike-related disruptions, GM withdrew and later reinstated profit guidance, projecting a year-over-year decline due to labor issues. The company initially aimed for adjusted EBIT in the $12-$14 billion range for this year, down from $14.5 billion in 2022. However, it now expects 2023 adjusted EBIT within $11.7-$12.7 billion due to costs associated with the UAW strike.
The new contract with UAW will raise labor costs significantly. GM is also retracting its near-term targets for electric vehicles due to slower-than-expected demand.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , Renault SA (RNLSY - Free Report) and BYD Company Limited (BYDDY - Free Report) , sporting Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 70.6%, respectively. The EPS estimates for 2023 and 2024 have increased 8 cents and 7 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimate for 2024 has increased 2 cents in the past 60 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings indicates year-over-year growth of 34.2% and 74.7%, respectively. The EPS estimates for 2023 and 2024 have increased 59 cents and 55 cents, respectively, in the past 60 days.