GM offers early buyouts as part of a cost-cutting measure

March 9 (UPI) -- U.S. auto giant General Motors said Thursday it was offering a voluntary buyout program for workers not on the assembly line as part of a broader, cost-cutting effort.

The company said in a filing with the Securities and Exchange Commission that it enacted a Voluntary Separation Program for white-collar workers in the United States with more than five years on the job. Workers outside its domestic base only need two years or more of service.

"In connection with the VSP, the company expects to incur up to $1.5 billion of pre-tax employee separation charges, which will be substantially all cash-based, and up to $300 million in pre-tax, non-cash pension curtailment charges," GM explained in the filing. "The final amount of the charges will be based on the composition of employees who elect to participate in the VSP."

GM started the year with an announcement of plans to trim costs by $2 billion by 2024, with as much as half of that coming this year.

The Detroit-based automaker sold 2.27 million vehicles in the United States in 2022, an increase of 2.5% over 2021. That, however, did not translate to a strong financial performance.

Net income attributed to shareholders was $9.9 million during the three-month period ending in December, a 0.8% decline from the fourth quarter of 2021.

The company was forced to recall more than 800,000 vehicles last year -- some 740,000 because of a software glitch with daytime running lights and another 140,000 Chevy EVs because of fire and related safety issues.

Later, however, it announced plans to spend nearly $1 billion on a new electric, V-8 engine.

In a statement to CNBC, meanwhile, the company said it was encouraging its eligible employees to take the buyout.

"By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market," it said.