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.