General Motors (GM) is revamping its approach to worker bonuses, with a focus on specific business areas such as electric vehicle (EV) sales and the performance of its autonomous vehicle unit, Cruise.
According to a report from Automotive News, GM will take into account company performance in EV sales, software and services, and Cruise operations when calculating bonuses for salaried workers in 2024. The report indicates that 60 percent of the bonuses will be based on free cash flow and earnings before interest and taxes, while the remaining 40 percent will be tied to the performance in the aforementioned areas.
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“Our bonus plans have evolved over time to match business needs and align more closely with our strategic goals,” said Tara Kuhnen, a GM spokesperson. “Our goal is to incentivize everyone to think and act with an enterprise perspective.”
The move follows GM’s decision to halve spending at Cruise in 2024, following an accident involving one of its driverless taxis in October. The incident resulted in the company losing its permit to operate autonomous vehicles. Subsequently, Cruise reduced its workforce by about a quarter and parted ways with several executives.
GM CEO Mary Barra has emphasized the company’s commitment to “refocus and relaunch” the autonomous vehicle unit this year, as stated in the automaker’s recent Q4 2023 and full-year earnings call.
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“At Cruise, we are committed to earning back the trust of regulators and the public through our commitments and our actions,” Barra said in a letter to shareholders.
In addition to its efforts with Cruise, GM is gearing up to launch up to six new EVs this year, including the Chevy-brand Silverado EV, Equinox EV, and Blazer EV, as well as the Cadillac-brand Escalade IQ and Celestiq EV, and the GMC Sierra EV.
