GM to cut 1,750 jobs as EV demand cools
Sign up now: Get ST's newsletters delivered to your inbox
Automakers in the United States are backpedaling hard on their EV plans, anticipating a sharp drop in consumer demand.
PHOTO: AFP
Follow topic:
DETROIT - General Motors said on Oct 29 it will cut US electric vehicle (EV) and battery production and 1,200 factory jobs at its EV plant in Detroit, Michigan, along with 550 jobs at an Ohio battery plant, as the automaker responds to a significant slowdown in demand for its battery cars.
GM said the cuts were “in response to slower near-term EV adoption and an evolving regulatory environment”.
GM has lobbied Congress and the White House to ease emissions requirements, and in September also cut its EV production.
Automakers in the United States are backpedalling hard on their EV plans, anticipating a sharp drop in consumer demand following the expiration of a US$7,500 (S$9,728) federal tax credit for EV buyers.
Some executives and analysts have said EV sales – which exceeded 10 per cent of overall US car sales over the summer – could fall by half in coming months.
Nissan, Jeep maker Stellantis and other automakers have cancelled plans for future electric models.
Earlier in October, GM said it was cancelling production of its electric BrightDrop van, citing slow development in the commercial EV van market.
Mr Sam Fiorani, vice-president at research firm AutoForecast Solutions, said he expected more US auto industry EV job cuts to follow and “lower EV production than we’ve seen over the last few years and higher prices”.
United Auto Workers (UAW) union president Shawn Fain blasted GM for the job cuts, noting the company raised expected annual profits to US$13 billion in October.
“The UAW will continue to fight for more investment in both (internal combustion engine) and EV production at GM and beyond,” Mr Fain said.
In a separate restructuring move, GM cut about 500 white-collar jobs in the last week, the company said.
In 2021, GM said it planned to transition to all EV sales by 2035 and boosted spending, but has since been retrenching.
GM chief executive Mary Barra said last week that “with an evolving regulatory framework and the end of the federal consumer incentives, it’s clear that near-term EV adoption will be much lower than planned”.
She added that GM expected to reduce EV losses in 2026 and beyond.
The company took a US$1.6 billion charge earlier in October related to changes in its EV strategy. REUTERS
