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    OEM Auto Industry Employees Receiving Record Profit Sharing

      The days of yearly reviews, raises and maximum auto production might be coming to an end as OEM auto companies find bigger profits in controlling production.

    The Pandemic had at the start made investors fearful that companies would be hurt, and profits and stock payouts would fall if not be stopped right out as companies looked to find ways to save cash as people stayed home due to Covid-19. Yes, some companies did stop many things and some companies even closed due to the global pandemic, yet Auto companies found that having control of a tight inventory actually pushed up record profits and in this their workers have also prospered along with the executives. Here we are posting just how well the OEM auto companies have done for their workers.

    44,000 UAW members, GM employees were eligible profit-sharing payouts of up to $10,250. GM is negotiating in good faith with the UAW to also address due to the chip shortage those employees that were unable to be eligible for profit-sharing due to plant closures. GM employees since 2015 have earned $72,000 in profit-sharing bonuses.

    56,000 UAW members, Ford employees are eligible for $7,377 profit-sharing. Ford is expecting even better earning in 2022 which should push up next year's profit-sharing.

    43,000 UAW members, Stellantis employees are eligible for $14,670 profit-sharing, the largest in 35 years since the bonus cap was removed.

    100,000 Unionized employees at Daimler AG and Mercedes-Benz AG will receive $6,762-dollar profit-sharing bonuses.

    As more auto companies announce their results this story will be updated.

    As profits soar for the auto company segment, one must ask will this increased profitability keep the dealer lots on the lean side of inventory? Is a made to order model the new 21st century model of how to buy an auto?

     

    GM autoworkers eligible for up to $10,250 in profit-sharing for 2021 (detroitnews.com)

    Ford's UAW workforce to get average of $7,377 in profit-sharing checks (freep.com)

    Stellantis UAW workforce set for $14,670 profit-sharing checks (freep.com)

    Mercedes-Benz Giving German Employees Record Bonus, Close to $7,000 - autoevolution

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    Since some can only think of a single year, 2021, edit this to be even more clear.

    Seems in the latest interview, GM has stated that large lots of prebuilt autos are over, they will never go back to that type of business (PRE-PANDEMIC) in building volume to have a ton of product and then heavy discounts to move it at the end of the year. Welcome to the 21 centuries of build to order or pay MSRP for the few auto options on the lot.

    GM's Barra expects high new-car prices and low inventory for 2022 (freep.com)

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    1 hour ago, David said:

    ...then heavy discounts to move it at the end of the year

    Where are stored '21 vehicles selling with "heavy discounts"??  GM just sent a memo discouraging charging TOO MUCH.  In fact, GM completely eliminated all factory rebates for a huge chunk of last year. 

    Welcome to the new reality; price gouging straight from the manufacturer with basically no competitive pricing via the dealer. ENJOY!!

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    7 minutes ago, balthazar said:

    Where are stored '21 vehicles selling with "heavy discounts"??  GM just sent a memo discouraging charging TOO MUCH.  In fact, GM completely eliminated all factory rebates for a huge chunk of last year. 

    Welcome to the new reality; price gouging straight from the manufacturer with basically no competitive pricing via the dealer. ENJOY!!

    WOW, you really are stuck in a single thought track of just 2021. The statement is very clear talking about the past before PANDEMIC when OEMs built crazy amount of auto's, had huge lots full of unsold inventory and then had to slap discounts on the hoods at one point getting to 5 figures to move them.

    You slap me for not thinking of the physical numbers of sold autos in this country to other statements. I get that in certain context I understand you stating a certain statement, but for a Pandemic that is 2 years old, one would think it was clear and understandable that any mention of the old type of business is over.

    Psychology 101 teaches that it takes people 6 to 9 months at the least to change habits. 12 to 18 months for new habits to become the new norm. As such, one can clearly understand that going back to the way things were before 2020 is not going to happen. Society has changed and with it, the way people were used to doing business. Auto industry is a perfect example, you can drive around to those jumbo dealers and see their huge, paved lots mostly empty now. The largest selection of autos is used. 

    Pretty clear when a CEO of a company of a general person post or says something about going back to the way things were, pre-pandemic is understood. Many businesses are now stating things just like this that even with mask mandates being removed, many people are not going to just go back to how things were in 2019. Buying items even autos has changed.

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    The years you were referring to were not specified, so pardon me. Referencing 10 or even 5 years ago doesn't make much sense to me, but I'll play.

    The "crazy amount of autos" actually isn't - annual volumes (passenger + commercial) have been surprisingly consistent within a tight range.

    1993-2007 was annually between 10.3m and just over 13m.
    It dropped with the recession starting in '08 to 8.6m, 5.7m, 7.7m 8.6m thru 2011.
    2012 thru 2019 was between 10.3m and 12.1m - or right back to '94-07 levels.
    2020 dropped due to the pandemic/supplier issue (chips) to 8.8m.
    2021 was 14.9m, which makes the 2-yr average [8.8 + 14.9/2] ... 11.8m.

    Or right back to '94-07 levels.

    So where exactly is Mary Barra putting the 'pin' in as far as comparing the future to 'the way things were' ???
    If she's talking about pre '08; oops- we already went there.
    If she's talking about pre '19; oops- we already went there. 

    If she's proposing to restrain production back to pre 1993 levels [6-8m] (and what does the UAW and supplier contracts have to say on that?) ... that's only going to exasperate full MSRP and higher sales numbers. Sure- the OEMs make HUGE profits cutting factory rebates out/down to near nothing... but the consumer doesn't so easily forget getting a 'good deal' vs. 'bait & switch / price gouging'.

    It's a sticky wicket that is best played by slight corrections instead of a massive shift.

    If ANYTHING is going to spur 'discount slapping', it'll be sudden price jumps of $5-$15 grand in asking prices.

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    While this is bad for us if we were BUYING a new vehicle, it does improve the chances that GM and Ford and (what's left of) Chrysler will still be around. 

    Remember how GM and Ford and Chrysler were before 2009?  Constantly building too much and moving the metal and perennial discounts.  That is truly no more.  At least Build to Order will make it easier to BUY what we want. . . . pity about the higher prices.

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