GM Earns Nearly $10B, Cuts Big Checks for the Hourly

Matthew Guy
by Matthew Guy

Flying in the face of empty dealership lots and a headache-inducing supply chain, General Motors reported this morning that the company recorded just under $10 billion in net income during the 2022 calendar year. This is good news for anyone wearing a GM hat, including hourly workers who will find enormous bonus checks in their mailboxes later this year.

How enormous? Try up to $12,750 – a figure determined by UAW negotiations back in 2019. Over 42,000 hourly workers will receive this sum, or one like it, on their February 24th paychecks according to a report from the Detroit News. Apparently, this amount is roughly 20 percent higher than profit-sharing amounts in 2021, though the formula for arriving at the number is so complex it causes this author’s head to spin, even more than it does after his morning ration of Angel’s Envy bourbon.

As for the company itself, last year’s revenue was just shy of $157 billion, up nearly $30 billion from that same time frame twelve months prior. Roughly $43 billion was made in the fourth quarter alone, representing about 27 percent of totals and suggesting sales were picking up as the calendar flipped out of 2022.

Anyone doing the math will have figured out this represents a net income margin of 6.3 percent, a number some distance from last year’s 7.9 percent. This was largely blamed on two factors: Hauling out of Russia apparently represented a $657 million hit, while buying out Buick dealers who were not onboard with that brand’s EV future dinged the company for a further $511 million. 

GM hasn’t disclosed just how many Buick dealers chose to give up their franchise instead of plowing a quarter-mil into upgrading their facilities for electric vehicles. Estimates place the number of stores in America at about 2,000 outlets. However, the company made a similar offer to their 880 Cadillac dealers a couple of years ago, and about 320 took the money and ran. Unofficially, buyout offers for Cadillac dealers ranged from roughly $300K to over a million bucks. Estimating each Buick buyout at $500,000 suggests General Motors may have shed over half its dealerships for that brand.

[Image: The author]

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Matthew Guy
Matthew Guy

Matthew buys, sells, fixes, & races cars. As a human index of auto & auction knowledge, he is fond of making money and offering loud opinions.

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4 of 33 comments
  • Redapple2 Redapple2 on Feb 01, 2023

    Arthur. I know more than a little about labor relations having studied under The Dean at GMI ( The West Point of Automotive Engineering ). The union today was ushered in during an age of barbarity in the 1930's. Ushered in and locked in then and lasting til today..

    • See 1 previous
    • Arthur Dailey Arthur Dailey on Feb 01, 2023

      Not quite 'ushered in' but accepted after as you alluded to enduring much brutality. And viewed then as 'the enemy'. If you treat someone as an enemy, then they will view you in the same way. But times have changed. UNIFOR demonstrated this by continuing the fight to keep the Oshawa Plant operating in some capacity. Many included myself considered this to be a 'lost cause'. Until GM announced that they would indeed 'retool' Oshawa and again assemble vehicles there.

  • Fred Fred on Feb 06, 2023

    I haven't paid attention, but my local dealer is no longer Buick or Cadillac. Just Chevy and GMC. Probably where the money is in a small town rural area. Tough to compete with the prices in Modesto or beyond.

  • 6-speed Pomodoro I had summer and winter tires for a car years ago. What a pain in the butt. You've permanently got a stack of tires hogging space in the garage and you've got to swap them yourself twice a year, because you can't fit a spare set of tires in a sportscar to pay someone else to swap 'em.I'd rather just put DWS06's on everything. But I haven't had a sportscar in 8 years, so maybe that's a terrible idea.
  • ShitHead It kicked on one time for me when a car abruptly turned into my lane. Worked as advertised. I was already about to lean into the brake as I was into the horn.
  • Theflyersfan I look at that front and I have to believe that BMW and Genesis designers look at that and go "wow...that's a little much." Rest of the car looks really good - they nailed the evolution of the previous design quite well. They didn't have to reinvent the wheel - when people want a Mustang, I don't think they are going to cross-shop because they know what they want.
  • Theflyersfan Winters go on around Halloween and Summers go on in late March or early April. However, there were some very cold mornings right after the summers went on that had me skidding a bit due to no grip! I do enough (ahem) spirited driving on empty hilly/mountain roads to justify a set of sticky rubber, and winters are a must as while there isn't much snow where I am (three dustings of snow this entire winter), I head to areas that get a bit more snow and winter tires turns that light, RWD car into a snow beast!
  • SCE to AUX My B5.5 was terrible, but maybe the bugs have been worked out of this one.