General Motors announced record-breaking profits, which workers will see in their pockets with a $14,500 check.
TOLEDO, Ohio — General Motors workers are set to receive record profit-sharing $14,500 checks, following a strong financial year for the company. This announcement comes as the auto industry awaits potential policy shifts under the Trump administration that could impact future production.
GM reported earnings exceeding $14 billion in the past year. The United Auto Workers negotiated a new profit-sharing agreement with the automaker in the recent contract talks. Under the agreement, GM employees receive $1,000 for every $1 billion in company profit.
Tony Totty, president of UAW Local 14, said this check starts the year off strong.
“Us here in Toledo actually drove that,” Totty said. “We were a part of so much of the profits that all members are going to share in.”
He also emphasized that the influx of money benefits the broader community because workers will most likely spend that money at area businesses.
However, despite the positive financial news, uncertainties remain regarding the future of GM’s electric vehicle production in Toledo. The Biden administration had introduced incentives for EV manufacturing, but former President Donald Trump repealed them on his first day in office.
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Totty remains optimistic, noting GM’s significant investments in retooling facilities for EV production.
A GM spokesperson confirmed that the company does not plan to alter its EV strategy despite political changes.
The Trump administration’s stance on tariffs also adds to industry uncertainty. Art Wheaton, a union and auto industry professor at Cornell University, said that tariffs could have mixed consequences.
“If they’re just big blanket tariffs, it’s always tit for tat. You get into a trade war which doesn’t help the world economy or the U.S. economy,” Wheaton said. “But if they’re targeted for a specific reason and a specific purpose, they can be useful.”
Totty said if tariffs attract and keep auto production in the United States, he would be for it. But as of now, it’s uncertain what tariffs Trump might impose.
