The Cruise debacle is interesting to say the least. I’m wondering how this’ll affect Honda’s investment in Cruise and the robotaxi planned to launch in Japan.
So now all those executives can cut there pay cheques and get rid of that stupid self driving car company. Oh and ditch plans to sell overpriced EVs.
Interesting that UAW strikes were gonna drive prices to the moon, but barely 2 months later GM is announcing a stock buyback AND increasing their dividend.
GM is announcing a stock buyback
They are not announcing a stock buyback. They are announcing changes to their existing buyback plan. Including the increased dividend, their new guidance is estimating $1 billion dollars less going to shareholders. So it’s actually a pretty big cut.
so a company complaining to high heaven about their workers wanting too much when they just want to feed their families why are they doing a stock buyback or dividend at all. They should be using that money to pay their workers a livable wage and right the ship and that is actually in the best interest of the stockholders.
You’re thinking like a regular person. Think like a capitalist that makes their money off exploitation and you’ll get there.
They probably have a lot of loans underwritten by stock, so they need their stock price to stay at certain numbers or else their credit rating gets worse and they have to pay more to service their debt.
Unless you are a car company that takes pre-orders, people only pay for cars after they are made. So you either need to hoard cash or take on debt in order to maintain consistent cash flow.
Issuing and buying back shares is a pretty common way to handle cash flow and is really a separate issue to living wages and employee compensation.
Where in the article does it say they are revising their buyback plan? Because this article (and others) clearly state that the buyback announcement is new
GM’s new guidance reduced expected net income attributable to stockholders for 2023 to a range of $9.1 billion to $9.7 billion, compared to the previous outlook of $9.3 billion to $10.7 billion.
So their previous guidance (how much they predicted for a year) was replaced with new guidance.
The article actually never says the $10 billion is new. It just heavily implies it.
If you check out the link in this article to the UAW agreement, you’ll see this:
Ford (F.N) has estimated the new contract will add $850 to $900 in labor costs per vehicle.
I’m guessing GM is pretty similar to this, so yeah, not exactly crippling to them. It will be interesting to see their annual report after all this.
Guys I’m starting to think that maybe these companies are lying to us and are using us against each other.
Completely different. And I know it’s a crazy concept, but the entire purpose of a publicly held company is to make money for their shareholders.
I’m wondering how this’ll affect Honda’s investment in Cruise and the robotaxi planned to launch in Japan
That probably wouldn’t affect so much, Honda is one of Cruise shareholders, they also put the money on this company.
I hate corporations like GM.
GM should just make better cars
The fact that they are cutting Cruise spending rather than investing more into R&D is significant. If Waymo is the only company that actually figures out self-driving it’s going to be huge.
self-driving is general AI problem in a safety-critical application, its not going to be solved anytime soon (in a way that can be broadly commercialized) There’s too much money and careers sunk into “Self Driving Cars” it to admit this.
We went from “AI? Lol” to “this AI is better than 70% of all humans at anything, and you wouldn’t even know it was an AI if you spoke to it” (ChatGPT4/premium) in about 5 years.
And you think self driving is “far away?”
Curious indeed how you’re so certain. It always boggles my mind how cocksure all of the “no one wants a $600 phone” types are. And the weird thing is, they are always wrong.
never doubted the iphone for a second but have had the same view on self-driving since 2016 (and been right the whole time btw). the SDC hype machine meanwhile has been saying “1 more year” for pretty much a decade whild burning many $Billions a year.
ChatGPT is nice step forward but it is expensive and error prone, its only useful as a productivity enchancer in time consuming but low stakes content work like SEO blogging or Graphics arts. There’s a massive cognitive dissonance between the tech companies shuttering massive development operations for Alexa & Google Home (because theyre shit and dont make any money) while at the same time pumping ChatGPT. What ChatGPT is actually best at is convincing $Billions worth of Venture Capital and Fortune500 IT buyers that they need buy millions of dollars of GPU time from Cloud Providers. That cycle will play out for a couple years before people realize the commercialization opportunities are fairly limited.
You don’t have a clue what you are talking about. I watched the recent Microsoft Ignite event on what they are rolling out AI wise and it’s pretty incredible. You have no idea how much it has improved software development in making us way more productive. Now we are being given the tools to take our own data and use their LLMs to create our own Microsoft Teams or O365 AI bots. I can think of a ton of uses for it already. Also we are already using AI to analyze and predict a lot of client to company interaction. And we are a nothing small business.
You really are talking without knowledge if you think the commercialization opportunities aren’t there.
that’s odd bc I just took one in Arizona and it worked great?
Unfortunately, ever since the “Uber incident” (which also happened in AZ), the autonomous vehicle industry has been operating under a sort of “Sword of Damocles.”
You have one incident where you seriously injure or kill someone, and you’re done. To date, the only fatality has been with the Uber (which was supervised at the time) and the Cruise incident was the result of a hit and run driver pushing the victim in front of their vehicle…an “edge case” if there ever was one.
I’d hazard a guess and say that Waymo is probably very worried about this. It’s inevitable that one of their vehicles will be involved in an incident where there’s a serious injury or fatality. If/when that happens, they’re at the risk of being shut down.
Which is an absurdly high bar. How many legacy auto manufacturers are still in business despite their faulty product causing dozens or even hundreds of casualties?
Yeah, it’s bullshit. Were so afraid of AVs killing one person were happy to let 9 people die by the hands of humans texting, drunk driving, street racing, falling asleep etc
GM’s new guidance reduced expected net income attributable to stockholders for 2023 to a range of $9.1 billion to $9.7 billion, compared to the previous outlook of $9.3 billion to $10.7 billion.
The headline is incredibly misleading - they are cutting nearly a billion dollars out of their already existing stock buyback plan.
Net income is not the same thing as a stock buyback.
Net income attributable to stockholders is not the same as net income either.
Regardless, GM has already done $4.2 billion dollars in buybacks since 2022 so it’s not that far from the normal flow of business for them.
GM has already done $4.2 billion dollars
in buybacksin common stock dividends and buybacks since 2022Don’t know how to read ?
lol
Net income and stock buybacks aren’t the same thing. They’re revising their earnings forecast for 2023
So the UAW killed GM’s last shot at self driving… Cruise issues aside, their tech was on path to work it seems. This is why, regardless of really solid human right values, unions are so often villianized. They lock in a company to today and the expense of tomorrow and the workers of tomorrow.
Right, on the path to work which is why one of their cars hit a woman in SF and dragged her for 20 feet. But blame the UAW, right?
A hit and run driver hit a jaywalker that was thrown into an adjacent lane that the Cruise vehicle was traveling in, and right next to.
I mean, GM is a shit car company and the UAW has done no help. Look at Mercedes and BMW in America – running great. Don’t really need cruise to blame the garbage that is the UAW
GM killed cruise. Not the workers. Cruise also killed cruise when they ran over various numbers of pedestrians across California
It’s amazing how Redditors were spoofed into believing this. At no point did this happen, all occasions were a human car hitting a pedestrian, then the media mis-reporting it as a Cruise. Insane…
California banned Cruise for safety violations, not the media. And with that feel free to move on to your California is a communist republic rant /s
are you insane? I live in San Francisco. Stop shadow boxing your demons
GM should just go private, it’s such an undervalued stock. Its market cap is $44 billion, the same as twitter.
GM is the worst managed auto company after Nissan. It’s not undervalued, it’s ran by idiots. It’s stock is at where it is partially because of a lack of faith in the company. Me and many others find the likelihood of GM needing another bailout to avoid bankruptcy in the future to be somewhat high.
You would be stunned at how little GM values their target customers opinions.
GM will keep Apple CarPlay after all. Amirite r/cars?
Nooo is this the end for cruise? Doug has been saying how it’s better than teslas program. Does that mean Tesla autopilot system is also done for?
They’re talking about the fully self driving taxis like Waymo, one of the Cruise taxis ran over a lady a little while back.
Ohh NVM I thought it was referring to super cruise
I remember so many people, when the unions were striking (before they won BTW) in these threads saying how companies would take such a hit it would affect future products.
I’ll save this link for them later lol