U.S. auto giant General Motors (GM) announced that it will lay off 1,300 workers at two Michigan plants in early January 2024, reflecting uncertainty about the market outlook for electric vehiclesGM's stock price jumped more than 6% on the 14th.
Reuters, CNN Business and other foreign media reported that General Use announced on December 14 that it would lay off 945 employees at the Orion assembly plant in Michigan, which produces pure electric vehicles such as the Chevrolet Bolt EV and Bolt EUV CrossoverIt will also lay off 369 employees at the Lansing Grand River assembly plant due to the Chevrolet Camaro shutdown.
GM had planned to increase production of the Chevrolet Silverado EV and GMC Sierra EV at its Orion plant, but announced in October that it would postpone production of the Chevrolet Silverado EV and GMC Sierra EV.
GM's move reflects the growing uncertainty facing the electric vehicle market, EDMUNDSAccording to data from com, the situation of electric vehicles being "sold at a reduced price" has become more common recently, and dealers have taken longer to digest inventory than traditional fuel vehicles, and demand growth has a cooling trend.
GM originally aimed to produce 400,000 EVs between 2022 and mid-2024, but announced in October that it was abandoning that goal.
Ford, another major U.S. auto giant, also recently laid off 700 jobs at a plant dedicated to the production of the F-150 Lightning, a popular electric vehicle.
GM's stock price rose 665%, closed 36$25, up more than 30% from the low point in November.
Previously, the United Auto Workers (UAW) launched a 46-day strike, which caused GM to lose about $1.1 billion in adjusted EBIT for the whole yearThe union's bid for a generous wage increase of up to 25 percent in the latest contract has also raised fears that GM's production costs will rise dramatically. However, GM recently said it expects to completely eliminate the increased costs of the new collective bargaining contract in its latest 2024 budget, and predicted that the investment in its self-driving car subsidiary Cruise will be significantly reduced by hundreds of millions of dollarsCruise recently announced that it will lay off 900 employees, accounting for about 24% of the total workforce.
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