19k GM workers Take Payout

The Chicago Tribune is reporting that nearly 1 in 4 GM workers are taking a payout package to leave the company. The move is expected to save GM money in the long run. New employees who are willing to work for less money will take some of their places.

This is shocking news! GM has long been a source of good American jobs. Now that Japanese car companies have taken a solid lead in the automobile industry, some restructuring of the Big Three have to take place to stay competitive.

In response to the current economic market, GM is scrapping two designs of its cars and planning for the future. The Energy Act of 2007 demanding that cars attain an average of 35 mph by 2020. That is a 40% increase from GM's current average. This issue coupled with rising fuel costs and a demand for better fuel efficiency from consumers is pushing GM to rethink its previously strongest selling SUV's and trucks. Instead, they will cut shutdown plants and lay even more people off in attempt to keep up with the times.

Things are basically not looking good for this company...but hopefully they can adjust to the market demand and build cars that people want...hybrids.