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According to CCTV Finance, according to multiple media reports on August 19, General Motors of the United States conducted a streamlined assessment of its "software and service department".Plans to lay off more than 1,000 salaried employees worldwide.As of the end of last year, GM had a total of 76,000 salaried employees worldwide, and the layoffs accounted for about 1.3% of the company's total salaried employees.The main reason for GM's layoffs is to cut costs, meet the challenges of the development of the automotive industry, and at the same time focus on investing in new areas.

According to Overseas Network, according to a report by CNBC on August 19, General Motors announced that it would lay off more than 1,000 employees worldwide. People familiar with the matter said that more than 1,000 people will be laid off, including 600 employees in Warren, Michigan.Affected employees were notified on the morning of August 19th local time.

US media said that the layoffs occurred less than six months after GM's leadership change, with former Apple executive Mike Abbott, who was previously employed by the company, leaving for health reasons.

In addition, the report also stated thatFearing an industry recession, U.S. automakers are trying to cut costs and reduce their workforce.At the same time, these companies are investing billions of dollars in emerging markets such as electric vehicles.

According to the Shanghai Securities News, on August 14, in response to rumors that GM was restructuring its China business, laying off employees, and reducing production capacity, a GM China official said:GM's partnership with SAIC and its commitment to driving the long-term development of the joint venture have not changed, and GM will continue to provide Chinese consumers with GM's best products and technologies and make good product plans for the future.As GM CFO Paul Jacobson said earlier at an investor conference,"The China business is a high-quality asset for us now and in the future."

To achieve long-term development goals, GM and its joint venture partner SAIC are working more closely than ever to achieve profitable and sustainable development.

GM's second quarter 2024 financial report will reveal that the Chinese market will continue to face challenges brought about by changes in the industry's competitive landscape and aggressive pricing. GM is working closely with its joint venture partners to restructure its business to achieve profitability and sustainable development. To this end,GM has taken a number of important steps, including reducing inventory, building on demand, protecting its pricing structure and reducing fixed costs.

According to Meijing.com, behind all the news, GM is under pressure in the Chinese market. According to the China Passenger Car Association, in the first six months of this year, the market share of American joint venture cars was 6.7%. Last year, this figure was 7.9%. Specifically, in the second quarter of this year, GM's retail sales in the Chinese market exceeded 370,000 vehicles, lower than the 440,000 vehicles in the first quarter of this year.

Some people believe thatGM's sales performance is partly related to its slow transition to electrification and new energy.

In terms of sales, in the second quarter of this year, GM's new energy vehicle sales increased by 24.1% year-on-year to more than 143,000 units, accounting for 38% of the total quarterly sales. GM China said that it will continue this momentum in 2024 with the intensive release of new energy products.

In addition, GM's global performance remains remarkable.Its second-quarter financial report showed that GM's net income reached US$48 billion, net profit reached US$2.9 billion, and adjusted EBITDA reached US$4.4 billion.Based on this performance, GM adjusted its full-year financial outlook, with earnings before interest and taxes raised from $12.5 billion to $14.5 billion to $13 billion to $15 billion, and cash flow from the automotive business raised from $8.5 billion to $10.5 billion to $9.5 billion to $11.5 billion. GM's performance and revenue in the global market may provide more support for its business and development in the Chinese market.

edit|Wang Yuelong Du Bo

Proofreading|Duan Lian

Daily Economic News Comprehensive CCTV Finance, Overseas Network, Shanghai Securities News, Meijing.com

Daily Economic News