GM cutting salaries by 20% during COVID-19 outbreak

Posted at 6:35 PM, Mar 26, 2020
and last updated 2020-03-26 19:35:54-04

(WXYZ) — General Motors salary workers will get a 20% paycut amid the COVID-19 outbreak, 7 Action News has confirmed with the automaker.

According to the automaker, they plan to pay back the reductions by late 2020 or early next year, with interest.

"GM’s business and its balance sheet was very strong before the COVID-19 outbreak and the steps we are taking now will help ensure that we can regain our momentum as quickly as possible after this crisis is over," the automaker said in a statement.

GM is the latest of the Big 3 automakers to take cost-cutting moves during the coronavirus pandemic.

On Thursday morning, Ford announced the Executive Chair Bill Ford Jr. would defer his salary for at least five months and more than 300 other executives will defer 20% to 50% of their salaries.

All three automakers have shut down North American plants during the outbreak, but Ford said it was aiming to get some plants back up and running by April 14, the day after Gov. Gretchen Whitmer's executive stay-at-home order ends.

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