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-- OriginalOwner_ writes:

The World Socialist Web Site reports:

In spite of a continuous chorus in the media of a booming economy creating robust job numbers, General Motors is unleashing a new round of attacks on autoworkers in North America as part of a global cost-cutting offensive against the working class.

The corporation announced on [April 13] it will cut one of two operating shifts at its massive Lordstown, Ohio, assembly plant, cutting as many as 1,500 jobs effective June 15. As recently as 2016, the plant was operating three shifts around the clock with nearly 4,000 workers. By the end of June only 1,500 will remain.

As sales for the compact Chevy Cruze, the only vehicle produced at the facility, began to slip, GM shuttered the third shift in January 2017, axing 800 jobs. Over the course of 2017, the plant was idled for weeks at a time and rumors began to circulate about the impending layoffs.

As an indication of the severity of the cuts, this is the first time since the recession of the 1980s that the plant will operate with only one shift.

[...] The company sold 450,000 fewer vehicles to dealers last year than they did in 2016, but because of aggressive cost-cutting attacks on the workers, imposed by the union, which include everything from an expansion of Temporary Part Time employees at less than half pay, widespread layoffs and shutdowns[,] GM pretax profits for 2017 topped $12.8 billion.

US passenger car sales are on track to decline for the fifth straight year while sales of light trucks are setting records. US sales of compact cars dropped 10 percent in the first quarter and 5.8 percent through 2017.

Lordstown is not the only plant affected by this shift. GM's Detroit-Hamtramck factory, for example, relies heavily on production of small and midsize sedans, including the Buick LaCrosse, Cadillac CT6, Chevrolet Impala, and the Chevrolet Volt. In October, the automaker announced plans to cut about 200 jobs there and halt production beginning November 20 through the Christmas break, affecting 1,500 jobs over the holidays. The second shift was eliminated in March 2017, eliminating 1,300 jobs.

[...] The same conditions are developing in [GM] factories everywhere as GM pursues its cost-cutting strategy with a vengeance.

Original Submission

fliptop writes:

Tesla has announced layoffs of "more than 10%" of its global workforce in an internal company-wide email:

For the last few months, it has looked like Tesla might be preparing for a round of layoffs. Tesla told managers to identify critical team members, and paused some stock rewards while canceling some employees' annual reviews. It also reduced production at Gigafactory Shanghai.

Then, over the weekend, we heard rumors that these layoffs were about to happen, which came to us from multiple independent sources, as we reported on yesterday. The rumors indicated that layoffs could be as high as 20%, and in addition we heard that Tesla would shorten Cybertruck production shifts at Gigafactory Texas (despite CEO Elon Musk's recent insistence that Cybertruck is currently production constrained).

Now those rumors have been confirmed – though with a lower number – in a company-wide email sent by Musk, which leaked soon after it was sent.

[...] The news follows a bad quarterly delivery report in which Tesla significantly missed delivery estimates, and had a rare year-over-year reduction in sales. While Tesla does not break out sales by geographical region, the main dip seems to have come from China, where Chinese EV makers are ramping quickly both in the domestic and export market.

Full text of email available at TFA.

Previously: Tesla is Reportedly Planning Layoffs

Original Submission

fliptop writes:

Losing ground in the race to produce electric vehicles, German and French carmakers are heading toward a disruptive wave of factory closures:

Volkswagen AG is considering factory closures in Germany for the first time in its 87-year history, parting with tradition and risking a feud with unions in a step that reflects the deep woes roiling Europe's auto industry.

After years of ignoring overcapacity and slumping competitiveness, the German auto giant's moves are likely to kick off a broader reckoning in the industry. The reasons are clear: Europe's efforts to compete with Chinese rivals and Tesla Inc. in electric cars are faltering. (full article is paywalled)

"If even VW mulls closing factories in Germany, given how hard that process will be, it means the seas have gotten very rough," Pierre-Olivier Essig, a London-based equities analyst at AIR Capital, told Bloomberg. "The situation is very alarming."

[...] Car sales in Europe are down nearly one-fifth from prior to the COVID-19 pandemic and EV demand has slackened as Germany and Sweden have removed and reduced incentives to purchase the vehicles, Bloomberg reported. As a result, Chinese EV manufacturer BYD has jumped into the European market, pricing its Seagull model at just $9,700 before tax, a far cry from the European's average EV cost of $48,000 in 2022.

VW began downsizing in July, with its Audi subsidiary cutting 90% of its 3,000 person workforce at its manufacturing plant in Brussels, Belgium, according to Bloomberg.

The company's share price is now approaching the lows of its 2015 "diesel crisis," when the U.S. Environmental Protection Agency accused the company of installing illegal software in its cars in order to artificially improve its results on diesel emission tests, BBC News reported. The company also posted a €100 million net cash flow loss on its automotive business in the first half of 2024.

Related:

• South Korean EV Battery Makers Reporting Big Losses as EV Demand Slows
• General Motors Lays Off Hundreds Of US Workers
• Auto Woes
• Why are All the EVs so Expensive?

Original Submission

fliptop writes:

A multinational automaker prepared to lay off more than 2,000 American workers in August after benefiting handsomely from the Biden administration's subsidies for electric-vehicle production:

Stellantis, the parent company to famous brands like Ram and Jeep, has been awarded hundreds of millions in grants from the federal government to promote its EV manufacturing. But the Biden administration's largesse has not prevented the company from laying off American workers.

In July, the Department of Energy awarded Stellantis subsidiary Chrysler a $334.8 million grant to convert a shuttered Illinois plant into a facility for building EVs and another $250 million grant to make a ...(aaaand, paywall)

The AP ran a story a few weeks ago foreshadowing this action:

The statement comes as the company faces increased capital spending to make the transition from gasoline vehicles to electric autos. It also has reported declining U.S. sales in the first quarter, and it has higher costs due to a new contract agreement reached last year with the United Auto Workers union. Stellantis has about 43,000 factory workers.

[...] Stellantis CEO Carlos Tavares has said his company has to work on cutting costs globally in order to keep electric vehicles affordable for the middle class. Electric vehicles, he has said, cost about 40% more than those powered by gasoline. Without cost reductions, EVs will be too expensive for the middle class, shrinking the market and driving costs up more, Tavares has said.

I've been working on cars for most of my life and my observation is Chrysler/Ram are the worst vehicles on the road. I also own two Jeeps that are 50+ years old, however Chrysler has ruined the Jeep name by what I assume is cutting corners to save money because they're poorly designed and flimsy. Interesting the powers that be at Stellantis don't seem to be concerned about these issues.

Previously: Chrysler to Go All-Electric by 2028, Starting with the Airflow in 2025

Related:
    • General Motors Lays Off Hundreds Of US Workers
    • Tesla Lays Off 'More Than 10%' of its Global Workforce

Original Submission