As per the reports, General Motors (GM) has taken third place in employment as compared to Fiat & Ford. According to United American Workers (UAW), GM was the largest employer in the past four decades. But now, according to Bloomberg, it is said that Ford & Fiat are running in the top two positions. General Motors is a Multinational Company which manufactures and distributes vehicles and its parts to the different parts of the globe. Core automobile brands that come under General Motors are Caddilac, Chevrolet, GMC & Buick. It also manufactures in 37 different countries.
GM last year did announce about its rearranging program which would cut down the employee cost and would optimize its CAPEX. The company, however, is focusing more on the production of SUV, cross-over production, and trucks. As the market conditions changed and the demand for cars had fallen, GM again decided to allocate on production of new cars. It has announced earlier that it would be unallocated five of its plants, out of which three would be assemblies, and two would be propulsion plants. Through this restructuring program, the company would save an approximate value of $6 billion by 2020. Even though the company is reducing its headcount, it plans to create more US jobs. It has in total saved $1.1 billion this year through the restructuring program. Overall there is an optimistic view of its new launches and its cost-saving programs. In the second quarter of 2019-20 it has approximately sold 1.9 million cars out of which 876,000 units were sold in North America.
As per the reports, auto companies are focusing more on profit and growth; the traditional way of operations is slowly going down. Most of the automotive companies are focusing on Electric Vehicles (EV) and autonomous cars, which has demanded more for technologically advanced assembly lines. Huge layoffs are not only seen in the US but also Mexico, India, and China. Companies like Fiat, Ford Telsa are also cutting down their salaried employees. Looking at the overall situation, it can be seen that additional jobs could be cut out as all the tasks would be performed by computers.