Nemes Financial Advisors Featured in FOX 2 News GM Buyout Segment
Nemes Rush’s own Charlie and Chris Nemes appeared together with reporter Amy Lange on a recent video interview segment on FOX 2 News in Detroit.
The segment, which aired on March 9th, covered the recent GM announcement of a new voluntary separation program. The program, which is open to U.S. salaried employees who have been with the company for five years or more, includes a buyout offer equivalent to one month of pay for every year of employment, as well as COBRA healthcare coverage.
According to a letter GM CEO Mary Barra sent to all employees, the buyout option is designed to “accelerate attrition in the U.S.” as part of a strategy to avoid involuntary cost-cutting measures that might otherwise be needed. This all comes on the heels of a January announcement from Barra stating that the company would need to cut $2 billion in costs over the next two years—measures that are likely necessary, at least in part, due to a costly and ongoing switch to EV vehicle production.
Charlie and Chris provided valuable context about the considerations and potential implications for individual employees. Charlie pointed out that “If you’re one or two years away from retirement, it might be a great deal.” Chris discussed the size of the buyout, cautioning about the tax and financial planning implications and urging GM employees who might be considering accepting the buyout offer to factor that into their decision-making. Charlie highlighted what might be at stake, pointing out that while GM could come back with a more attractive buyout offer if not enough employees take this first one, they also might just decide to move forward with layoffs or other involuntary options.
To view the piece in its entirety, click here.
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“Advisory services offered through The Nemes Rush Group LLC. Securities offered through J. Alden Associates, Inc., member FINRA/SIPC. The Nemes Rush Group LLC and J. Alden Associates Inc. are not affiliated. The information presented is for informational purposes only. Please consult your tax professional to determine the tax effects on your personal situation prior to making any investment.”