GM will slash its North American workforce, using the savings to boost EV development

[Polycount]

It seems General Motors (GM) is starting to shift its focus away from traditional gas-powered cars if recent events are anything to go by.

On November 14, we reported that GM, Tesla, and Nissan had teamed up to preserve electric vehicle (EV) tax incentives. The partnership was formed out of a collective desire to keep the cars appealing and affordable for the general public.

Now, according to Reuters, GM is putting even more emphasis on its EV efforts. Specifically, the company is planning to "double" the resources it dedicates to its EVs and self-driving cars over the next couple of years.

...the company is planning to "double" the resources it dedicates to EVs and self-driving cars over the next couple of years

Of course, that money isn't appearing out of thin air. To fund its goals, GM is slashing 15 percent of its North American contract workers while cutting production of its vehicles with the worst sales. The money freed up by these cuts will be used to strengthen the development of GM's electric vehicles, as well as its upcoming autonomous cars.

Furthermore, GM will be halting production at several of its factories and plants throughout Ohio, Michigan, and Maryland. These shutdowns are expected to take place as soon as next year.

There may be a slight hitch in GM's plans, though. Reuters says the United Autoworkers Union is planning to fight the carmaker to the end. The labor group claims GM's decision will "not go unchallenged." Whether or not the UAW can actually stop GM from accomplishing its goals remains to be seen.

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https://www.techspot.com/news/77577-gm-slash-north-american-workforce-using-savings-boost.html

 

[yRaz]

Cutting contract workers or employees? That's a very important distinction and makes for a misleading article title.

 

[p51d007]

Ford, GM and others I think are making a similar mistake, that they made in the early 70's by getting OUT of the "car" market, concentrating on the overpriced & HIGH profit SUV's. In the early 70's, the LARGE cars (large enough to put 4-5 people into the trunk WITH a full size spare tire, were all the rage, but, the drummed up oil crisis, doubled gas prices to an unheard of 50-70 cents per gallon. (gee thanks, just when I was starting to drive!). The Japanese moved in and captured the small car market, and it was until the mid 80's for the U.S. automobile industry to "catch up". Their mid to late 70's cars were JUNK.
U.S. consumers, for the most part, are SHEEP. Whatever the crowd does, everyone goes along with it. Keep up with the Jones' mentality. Just like smartphones, where you live, what you drive "matters" to a lot of people to stay in their "click".
I drive Mustangs. I have for over 35 years. When the SUV craze started in the 90's (I think), I bought another Mustang and someone asked me why I bought a Mustang. Because that is what I want. But you didn't get an SUV? Nope? Everyone is driving SUV's, you should have gotten an SUV.
I sadly think the U.S. auto industry is going to repeat history. But, this time I don't think a lot of them will be able to "bounce back". The people running the American auto industry are not "car guys". Some I think, their idea of a car is riding around in the back of a limo!
Their job isn't bringing a product to market, per se...their "job" is to in any way shape or form, make the stock price go up.

 

[dob_1]

The people running the American auto industry are not "car guys". Some I think, their idea of a car is riding around in the back of a limo!

Yes! Preferably an Autonomous Electric limo!

 

[psycros]

"Of course, that money isn't appearing out of thin air. To fund its goals, GM is slashing 15 percent of its North American contract workers while cutting production of its vehicles with the worst sales."

And those jobs will go straight to where all the rest of the automaker jobs have went - Mexico. Even better, they'll still get huge incentives for pretending to divert investment into EVs. Win-win...if you're a top executive or majority shareholder. For the rest of us its BOHICA as usual.