General Motors CEO Mary Barra said the company has no plans for a one-time employee bonus following the passage of the Trump tax-cut bill last month, according to a report from The Detroit Free Press published on Tuesday.
Her comments come after Fiat-Chrysler announced a one-time $2,000 bonus for all employees following the tax-cut bill, which lowers the corporate tax rate from 35 percent to 21 percent. The rival automaker also announced plans to move Ram HD production from Mexico to Michigan in the same announcement. GM has no plans to wholly shift Silverado production from Mexico to the United States.
Barra defended the decision over bonuses and pointed to GM’s profit-sharing compensation system.
“We have a compensation system for both represented and salary workforce,” Barra said. Last year, GM handed out $12,000 in profit-sharing for all represented employees.
GM executives also commented on the state of the auto industry and expects similar profits despite a slightly weaker U.S. auto market. 2018 sales will likely hover in the high 16-million mark; sales in 2017 reached 17.2 million.