GM Expects To Share Big Profits
TRAVERSE CITY--(WWJ) It's very likely that negotiators for the UAW will be taking a close look at GM's $2.5 billion dollar profit, and that's fine with GM North America President Mark Reuss.
Reuss, speaking at the Management Briefing Seminars, said workers should share in the good times and the bad times, with rewards linked to performance.
"I don't care who you are," Reuss told reporters after his speech. "But, you ought to be based on quality performance, sales performance, on product performance. All of those things that I get measured on, I want everybody else to be measured on, too."
While saying quality is probably the most important performance metric, Reuss wouldn't rule out increases in the base wage rate. All three automakers, and the UAW have said repeatedly they needed a solution that rewarded workers, without tying the companies to higher costs.
Related: GM Posts $2.5 Billion Q2 Profit
GM's second quarter profits, Reuss says, were tied to stronger sales, and better pricing. He said that was the result of good products, and with several new products coming—including the Chevy Sonic subcompact, Reuss expected that to continue.
Cadillac is getting two new products, announced by Reuss in his speech. One is the small car, to be made at the Lansing Grand River plant. It will be smaller than the current CTS, and compete with imports like the BMW 3-series. It's currently named ATS, but that name could change.
The Cadillac XTS is a full size, front wheel car. It will take the place of the discontinued DTS—formerly the Deville in the lineup. But, Reuss says it's not a DTS replacement.
Cadillac currently doesn't have a "flagship" vehicle to compete with the Mercedes S-Class and BMW 7-Series. Reuss simply said "yes" when asked if Cadillac needs a vehicle like that. But, he quickly added that was only his personal opinion.
General Motors stock has been languishing well below it's IPO price, despite the better-than-expected earnings announcement. Reuss says he's going to concentrate on things under his control.
"We want to drive returns for our investors," he said. "We wanna do that. The only way I know how to do that is results."
There had been speculation that the government was waiting for the second quarter results before it sold its GM stake. Reuss says he wasn't sure of the timing, and that would be the government's call, not General Motors.
"I want them to be proud of what we did. I want them to be proud of where we're going. I want them to be proud financially too, of the investment that we're afforded."
