Auto industry Updates

1- Mercedes-Benz owner Daimler to cut 10,000 jobs worldwide 29 November 2019

Daimler personnel chief Wilfried Porth told journalists the number of jobs lost would be "in the five figures".The move comes days after rival Audi said it would cut 9,500 of its 61,000 jobs in Germany for similar reasons. Daimler said the car industry was going through "the biggest transformation in its history". "The development towards CO2-neutral mobility requires large investments, which is why Daimler announced in the middle of November that it would launch a programme to increase competitiveness, innovation and investment strength," the firm said."Part of this program is to reduce staff costs by around €1.4bn by the end of 2022 and, among other things, to reduce the number of management positions worldwide by 10%." https://www.bbc.com/news/business-50598673

2-Audi to cut 9,500 jobs to fund electric car push 26 November 2019

Carmaker Audi is to cut 9,500 of its 61,000 jobs in Germany between now and 2025 to make more money available for electric vehicles and digital working. The cuts - which aim to save €6bn (￡5.1bn) - will be achieved through an early retirement program. But the Volkswagen-owned firm also said its move into electric cars would mean the creation of up to 2,000 jobs. https://www.bbc.com/news/business-50563254

3-Ford to cut 12,000 jobs in Europe 27 June 2019

Car giant Ford has said it is planning to cut about 12,000 jobs across its European operations by the end of 2020.The carmaker is trying to cut costs and restructure its European business, which is losing money. It plans to have closed five of its plants by the end of next year, including the Bridgend engine plant in Wales, and it is selling another. Ford, which employs 51,000 people in Europe, hopes to achieve most of the cuts through voluntary redundancy. https://www.bbc.com/news/business-48787165

4-GM to start laying off 4,000 salaried workers on Monday February 1, 2019

The layoffs are part of a 15% reduction in white collar jobs in North America that the automaker first announced back in November. At the same time, it announced plans to close four US plants as well as a fifth in Canada. The job cuts and plant closings are part of ongoing cost reductions to free up $6 billion annually to invest in a new generation of autos, such as electric and self-driving vehicles. It is also making a push to develop a ride hailing service that will allow GM to make more money by selling rides to customers rather than vehicles https://edition.cnn.com/2019/02/01/business/gm-layoffs/index.html

5-GM is reinventing itself. It's cutting 15% of its salaried workers and shutting 5 plants in North America November 26, 2018

General Motors on Monday announced a major restructuring of its global business, saying it will shut production at five facilities in North America and slash its staff. GM will reduce its salaried workforce by 15%, including a quarter of the company's executives. The moves are the first big steps in the century-old GM's transformation. The company is reinvesting money away from cars that once dominated America's roadways and putting it into technology it believes will power its future. https://edition.cnn.com/2018/11/26/business/gm-jobs-electric-cars/index.html

6-The auto industry is shrinking as the world reaches 'peak car' — and it's dragging down the entire global economy Ben Winck 30.10.2019

The industry is slowing faster than expected and bringing massive economic threats with it. The sector experienced a "sharp downturn" in production and sales through 2018, and projections call for a similar decline through this year, according to the International Monetary Fund. The IMF pegged the industry as a major factor in lagging industrial output and said a prolonged contraction would directly affect the global economy. People thought the lag in auto sales "would not last as long as it has," IMF chief economist Gita Gopinath told The Wall Street Journal, adding that barriers to the sector's recovery "seem more durable than we thought." The auto sector represented 20% of 2018's slowdown in GDP and roughly 30% of the slowdown in global trade, according to the IMF's latest World Economic Outlook survey released this month. The declines come as certain markets reach maximum automobile saturation - also deemed "peak car" - and headwinds on automotive supply and demand threaten to pull the sector even lower. https://markets.businessinsider.com/news/stocks/auto-industry-shrinking-at-peak-car-dragging-global-economy-lower-2019-10-1028644883#supply-constraints1