Mass Layoffs Expected at Major Automakers Including Ford, GM, Volkswagen

Major automakers have announced mass layoffs recently as reports say they are struggling to turn a profit on EVs and the rise in cheap competition.

Ford, General Motors, and Stellantis plan to slash thousands from their workforce in the coming months. Volkswagen has announced plans to shutter three of its factories in Germany, which could come with massive layoffs.

Business Insider points to EVs as the reason for the current death by a thousand cuts by these established companies.

GM, has invested US$35 billion in its EV and autonomous-driving businesses, which has led to new electric models like the Hummer EV and Cadillac Lyriq. Despite the warm reception from the public, the company’s profits this year are entirely driven by the strong sales of its internal-combustion trucks and SUVs.

At Ford, the company’s Model e EV division lost nearly $3.7 billion during the first nine months of this year, including $1.2 billion in the last quarter alone.

In the US, Stellantis saw its sales plummet by 17% this year thanks to slower sales of its Jeep-branded SUVs and Ram pickup trunks while Volkswagen has not been doing well.

The upcoming mass layoffs may just be a painful financial correction for these brands who were swayed by the snake oil peddled but a Musky conman and we hope the world comes back to their senses soon and realise that the EV promise is not a paradise, it’s purgatory.