Cars and Drivers
GM EV Plans Trigger Over 1,000 Job Cuts
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24/7 Wall St. Insights
- General Motors Co. (NYSE: GM) reportedly will cut hundreds of jobs to increase its bet on an EV-driven future.
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Slow electric vehicle (EV) sales were supposed to mean job cuts, as U.S. car companies have not entered the market successfully. However, General Motors Co. (NYSE: GM) will temporarily cut hundreds of jobs to increase its bet on an EV-driven future.
According to Automotive News, America’s largest car company will lay off 1,625 workers at its Fairfax Assembly plant in Kansas and stop producing the Chevy Malibu sedan. The $30,000 gas guzzler was first produced by GM in 1964. Chevy has sold about 10 million Malibus since then. Once it is gone, Chevy will no longer have any gasoline-drive sedan models, and its corporate gas-powered footprint will shrink considerably.
The Kansas plant will start producing Chevy’s Bolt EV. It was GM’s early move into the EV market. It was first made in 2016. GM planned to kill it in 2023 but will revive it in 2025.
The Bolt has a key attraction to GM management. Among the complaints about EVs is that they are expensive; most are priced over $40,000. The Bolt’s base price is closer to $28,000. The U.S. car companies are particularly worried that China’s EV manufacturers already make cars with price points below $25,000. So far, tariffs have kept these out of America.
GM faces a hurdle that other car companies that sell EVs in the United States also face. That means low EV prices may help consumers overcome their concerns about EV range, EV charging stations, and the fact that they cannot be fully charged in cold weather.
Ironically, GM is laying people off to make EVs. If GM views the move as a success, they may not be out of jobs for long.
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