GMs Carrot On A Stick, Brave or Stupid Salesman, Sued By Own Shareholders

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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How are you rating your employees' performance? On this Friday, we dig into GM’s new employee evaluation, ask whether a salesman was right in trying to stop a test drive burglary and discuss the latest fallout from the CrowdStrike outages.

Show Notes with links

• GM is revamping its U.S. salaried employee performance ratings to reward top performers more generously and pressure low performers to improve or leave. Under the new system, the top 5% of employees now receive 150% bonuses, surpassing previous rewards.
  • An internal memo says that “To ensure GM has the talent needed to achieve our ambitious goals, a more intentional process is required that sets clear expectations for performance and holds people accountable,”
  • Employees are now rated on a five scale evaluation: Significantly Exceeds Expectations, Exceeds Expectations, Achieves Expectations, Partially Meets Expectations, Does Not Meet Expectations
  • GM believes that approximately 70% of its employees will fall into the "achieves expectations" category under the new performance rating system, receiving 100% of their target bonuses. The company estimates that about 5% will be rated as "does not meet expectations," facing potential "appropriate action," including possible exit from the company.
  • Similar adjustments are being made by other automakers like Ford to stay competitive against EV-focused companies like Tesla and Rivian.
• A New Orleans man was arrested after attempting to steal an Audi during a test drive on July 30 in Metairie, Louisiana. The suspect, Reginald Vaughn, encountered unexpected resistance from a dealership employee.
  • The car thief, Reginald Vaughn stopped the Audi abruptly during the test drive and threatened the dealership employee with a firearm, demanding they exit the vehicle.
  • After a short struggle while the car was being driven, the employee managed to put the car in park.
  • Vaughn fled the scene but was later arrested at a nearby urgent care facility where authorities discovered he was currently on probation for burglarizing vehicles
• CrowdStrike is being sued by its shareholders for a global software outage on July 19 that crashed over 8 million computers worldwide, claiming that CrowdStrike misled investors about the adequacy of its software testing.
  • The lawsuit claims CrowdStrike failed to disclose deficient update controls and inadequate software testing, which created a substantial risk of major outages and ultimately caused significant reputational and legal harm to the company.
  • CrowdStrike’s share price fell by 32%, significantly reducing its market value.
  • A CrowdStrike spokesperson stated, "We believe this case lacks merit and we will vigorously defend the company."

Hosts: Paul J Daly and Kyle Mountsier
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