General Motors to slash nearly 1,700 jobs across the US amid EV demand concerns– who will be impacted?
Layoffs at GM: General Motors on Wednesday announced plans to cut U.S. electric vehicle and battery production and cut 1,200 jobs at its EV plant in Detroit, as well as 550 jobs at its Ohio battery plant, in response to a slowdown in battery car demand, Reuters reported.
The automaker said in January it would pause battery cell production at two U.S. joint venture battery plants in Tennessee and Ohio for about six months and temporarily lay off about 1,550 workers at the battery plants.
Additionally, GM will indefinitely lay off 550 workers at its Ohio plant, which it operates jointly with South Korea’s LG Energy Solution.
The latest layoffs come after many companies announced layoffs. The latest was e-commerce giant Amazon, which confirmed that it would cut 14,000 jobs across various departments as part of the company’s efforts towards artificial intelligence.
Starting in January, GM will reduce production at its Detroit EV plant to just one shift from the current two, following previous layoffs at the facility. This change will reduce output by approximately 50%. The facility produces three large electric pickup trucks, including the Chevrolet Silverado and GMC Sierra, as well as the EV Escalade IQ and Hummer SUV.
What is GM’s reason for dismissal?
According to the automaker, the production and layoffs occurred “in response to slowing adoption of electric vehicles in the short term and the evolving regulatory environment.” The report noted that Congress and the White House were lobbied last month to ease emissions requirements.
U.S. automakers are significantly scaling back their EV plans, expecting a rapid decline in consumer demand when the $7,500 federal tax credit for EV buyers expires. Experts say EV sales could potentially drop 50% in the coming months after surpassing 10% of total U.S. auto sales this summer.
Nissan, Jeep maker Stellantis and other automakers have halted plans for future electric models. In early October, GM announced it was canceling production of its Brightdrop electric van, citing slow progress in the commercial EV van market.
GM revised downwards its outlook for electric vehicle sales and implemented cuts in additional electric vehicle production this year.
United Auto Workers Union President Shawn Fain criticized GM for the layoffs and emphasized that the company increased its expected annual profits to $13 billion this month. “The UAW will continue to push for greater investment in both (internal combustion engine) and EV manufacturing at GM and beyond,” Fain said in the report.
The company said it laid off around 500 white-collar workers last week. GM announced in 2021 that it planned to move to all EV sales by 2035 and increase investment, but has since scaled back its efforts due to declining demand.
Last week, GM CEO Mary Barra said: “With the evolving regulatory framework and the expiration of federal consumer incentives, it is clear that in the short term, electric vehicle adoption will be much lower than planned.”
He also hoped the automaker would reduce EV losses starting in 2026.
