GM's Major EV Investment Fails as Thousands Are Quickly Laid Off | Carscoops

GM's Major EV Investment Fails as Thousands Are Quickly Laid Off | Carscoops

      Approximately 3,300 blue-collar workers will lose their jobs, though some of these layoffs may be temporary.

      General Motors is implementing significant job cuts across Michigan, Ohio, and Tennessee, with Factory Zero facing the largest impact as around 1,200 positions are eliminated. Additionally, battery production is being temporarily halted at two Ultium Cells facilities.

      After making a considerable investment in electric vehicles, GM’s workforce is now feeling the effects. Recently in Canada, over a thousand workers were let go due to the discontinuation of BrightDrop vans.

      In the U.S., about 1,750 employees will be laid off, with Factory Zero in Michigan experiencing the most substantial losses of around 1,200 jobs. Another 550 layoffs will occur at the Ultium Cells plant in Ohio.

      Furthermore, there will be roughly 1,550 temporary layoffs, primarily at the Ultium Cells facilities in Ohio and Tennessee, impacting 700 workers in Tennessee.

      In statements, GM indicated that these changes were made “in response to slower near-term EV adoption and an evolving regulatory environment,” which likely refers to the removal of the clean vehicle tax credit and the easing of regulations during the Trump administration.

      Factory Zero manufactures the Chevrolet Silverado EV, GMC Sierra EV, GMC Hummer EV, and Cadillac Escalade IQ. Sales of these models were not particularly strong even when a $7,500 federal incentive was available.

      Despite these layoffs, GM maintains its commitment to U.S. manufacturing and believes that investments and flexible operations will enhance its resilience and adaptability during times of change.

      While it remains uncertain what exactly this entails, the company has stated that “affected employees may be eligible to continue receiving a significant portion of their regular wages or salary, along with benefits.”

      The announcement follows closely on the heels of CEO Mary Barra telling investors that the company had “delivered another very good quarter of earnings and free cash flow.” She noted that GM achieved its highest market share in the third quarter since 2017 and was raising its annual guidance.

      Despite the positive outlook, Barra signaled potential reductions, stating, “it is now clear that near-term EV adoption will be lower than planned. That is why we are reassessing our EV capacity and manufacturing footprint.” Nevertheless, she emphasized that “electric vehicles remain our North Star,” despite new investments in internal combustion engine vehicles.

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Approximately 3,300 blue-collar workers will lose their jobs, though some of these layoffs may be temporary. General Motors is implementing significant job cuts across Michigan, Ohio, and Tennessee, with Factory Zero facing the largest impact as around 1,200 positions are eliminated. Additionally, battery production is being temporarily halted at two Ultium Cells facilities. After making a considerable investment in electric vehicles, GM’s workforce is now feeling the effects. Recently in Canada, over a thousand workers were let go due to the discontinuation of BrightDrop vans. In the U.S., about 1,750 employees will be laid off, with Factory Zero in Michigan experiencing the most substantial losses of around 1,200 jobs. Another 550 layoffs will occur at the Ultium Cells plant in Ohio. Furthermore, there will be roughly 1,550 temporary layoffs, primarily at the Ultium Cells facilities in Ohio and Tennessee, impacting 700 workers in Tennessee. In statements, GM indicated that these changes were made “in response to slower near-term EV adoption and an evolving regulatory environment,” which likely refers to the removal of the clean vehicle tax credit and the easing of regulations during the Trump administration. Factory Zero manufactures the Chevrolet Silverado EV, GMC Sierra EV, GMC Hummer EV, and Cadillac Escalade IQ. Sales of these models were not particularly strong even when a $7,500 federal incentive was available. Despite these layoffs, GM maintains its commitment to U.S. manufacturing and believes that investments and flexible operations will enhance its resilience and adaptability during times of change. While it remains uncertain what exactly this entails, the company has stated that “affected employees may be eligible to continue receiving a significant portion of their regular wages or salary, along with benefits.” The announcement follows closely on the heels of CEO Mary Barra telling investors that the company had “delivered another very good quarter of earnings and free cash flow.” She noted that GM achieved its highest market share in the third quarter since 2017 and was raising its annual guidance. Despite the positive outlook, Barra signaled potential reductions, stating, “it is now clear that near-term EV adoption will be lower than planned. That is why we are reassessing our EV capacity and manufacturing footprint.” Nevertheless, she emphasized that “electric vehicles remain our North Star,” despite new investments in internal combustion engine vehicles. Approximately 3,300 blue-collar workers will lose their jobs, though some of these layoffs may be temporary. General Motors is implementing significant job cuts across Michigan, Ohio, and Tennessee, with Factory Zero facing the largest impact as around 1,200 positions are eliminated. Additionally, battery production is being temporarily halted at two Ultium Cells facilities. After making a considerable investment in electric vehicles, GM’s workforce is now feeling the effects. Recently in Canada, over a thousand workers were let go due to the discontinuation of BrightDrop vans. In the U.S., about 1,750 employees will be laid off, with Factory Zero in Michigan experiencing the most substantial losses of around 1,200 jobs. Another 550 layoffs will occur at the Ultium Cells plant in Ohio. Furthermore, there will be roughly 1,550 temporary layoffs, primarily at the Ultium Cells facilities in Ohio and Tennessee, impacting 700 workers in Tennessee. In statements, GM indicated that these changes were made “in response to slower near-term EV adoption and an evolving regulatory environment,” which likely refers to the removal of the clean vehicle tax credit and the easing of regulations during the Trump administration. Factory Zero manufactures the Chevrolet Silverado EV, GMC Sierra EV, GMC Hummer EV, and Cadillac Escalade IQ. Sales of these models were not particularly strong even when a $7,500 federal incentive was available. Despite these layoffs, GM maintains its commitment to U.S. manufacturing and believes that investments and flexible operations will enhance its resilience and adaptability during times of change. While it remains uncertain what exactly this entails, the company has stated that “affected employees may be eligible to continue receiving a significant portion of their regular wages or salary, along with benefits.” The announcement follows closely on the heels of CEO Mary Barra telling investors that the company had “delivered another very good quarter of earnings and free cash flow.” She noted that GM achieved its highest market share in the third quarter since 2017 and was raising its annual guidance. Despite the positive outlook, Barra signaled potential reductions, stating, “it is now clear that near-term EV adoption will be lower than planned. That is why we are reassessing our EV capacity and manufacturing footprint.” Nevertheless, she emphasized that “electric vehicles remain our North Star,” despite new investments in internal combustion engine vehicles. One of the approximately 40 remaining EV1s recently fetched an impressive $104,000 at sale. 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GM's Major EV Investment Fails as Thousands Are Quickly Laid Off | Carscoops

Approximately 3,300 blue-collar workers will lose their jobs, although some of the layoffs will be temporary.