Matt Hannah’s Post

General Motors ' layoff of up to 1,000 software engineers is a counterintuitive move for an #oem pursuing the #softwaredefinedvehicle . This leaves #gm more reliant on outside partnerships to develop the next generation of #electricvehicles . This includes both the vehicle's basic E/E architecture as well as the digital products and services that can be delivered over the air and implemented telematically. Rival Volkswagen failed spectacularly with their in-house software development firm CARIAD. Volkswagen now relies on Rivian for E/E architecture and the full software stack in the West, while China's ThunderSoft will fulfill a similar function for VW's #evs there. In contrast, Mercedes-Benz AG and BMW Group have managed a number of suppliers to create their electric vehicles' architecture, software stacks and digital products, while developing distinct branded experiences for their users. The question we now ask is which way will #generalmotors go? With whom will they partner? Or, will they continue to develop internally, though with a smaller staff at a slower pace? #electricvehicle #ev #ota #overtheair #autonomousvehicles #telematics #automobilindustrie #automotiveindustry #forecasting #autoforecastsolutions https://lnkd.in/dKdfAeWv

GM's decision to cut over 1,000 workers from its Software division ought to raise concerns for GM stakeholders. The shift towards Electric Vehicle (EV) companies with solid financial backing and a streamlined business model highlights the advantages of EV over Internal Combustion Engine (ICE) technology. EVs offer simplicity, lower maintenance costs, lower energy cost, enhanced safety features, and overall efficiency and the ultimate in performance. Legacy Auto companies like GM face a crucial dilemma - the success of their EV divisions adversely impacts their profitable ICE core business. The future of the Auto Industry lies in tech innovation, software integration, AI, user-friendly interfaces, and battery technology. This paradigm shift underscores the importance of adapting to a tech-forward approach. #AutomotiveIndustry #ElectricVehicles 🚘

Volkswagen does not rule out plant closures, layoffs as part of cost-cutting program — DPA The management also believes that the set cost-cutting goals cannot be achieved through the previously planned job cuts at the expense of partial retirement of employees and one-time payments BERLIN, September 2/ German automaker Volkswagen does not rule out plant closures and layoffs caused by production needs as part of the cost-cutting program adopted in 2023, the DPA agency reported citing a statement adopted after a meeting of the concern's management. The company’s management sees the need to carry out a large-scale restructuring of the Volkswagen AG brands. "In the current situation, without prompt action, the closure of car and component manufacturing plants cannot be ruled out," the statement says. In addition, the management believes that the set cost-cutting goals cannot be achieved through the previously planned job cuts at the expense of partial retirement of employees and one-time payments. In this regard, the management decided to terminate the employment guarantees that have been spelled out in employment contracts since 1994. Volkswagen Group CEO Oliver Blume, justified the course of austerity by the fact that the situation of the European auto industry has recently been complicated, in particular by the fact that new players are penetrating the European market. The austerity program adopted by Volkswagen in 2023 is designed to increase profits by 10 billion euros by 2026. #business #finance #financialservices

The Role Model of German Industry: Fading Light or Renewed Hope? Having worked for a German company as Korean for over 30 years, I’ve had the privilege to closely observe the strengths and weaknesses of German industry. It has long been celebrated for its commitment to responsibility, collaboration, and sustainable management. German corporations, like Volkswagen (VW), have stood as role models for the global business world. However, VW's recent decision to conduct large-scale layoffs amidst financial challenges raises questions about whether the essence of the German industrial model is being abandoned. VW is more than just a car manufacturer; it is a global icon of German industry. Having witnessed multiple crises during my career in a German company, I’ve been consistently impressed by how leaders have prioritized re-education, system improvements, and long-term investments over short-term cost-cutting measures like layoffs. VW’s decision to prioritize downsizing instead of upholding these values feels disheartening and marks a stark departure from the Germany I have admired. There is no doubt that VW faces a complex web of challenges. Fierce competition in the electric vehicle market, underperformance in China, and lagging behind leaders like Tesla are undeniable issues. However, the root cause of this crisis does not lie with the workforce but rather with strategic missteps by leadership. Their slow response to market transitions and inadequate preparation for the shift to electric mobility highlight the shortcomings of the management team. The German industrial model was built on the principles of responsibility and collaboration. To overcome this crisis, it is essential that all stakeholders—companies, government, and citizens—work together. I just want to mention the role to improve from citizens because the citizens are the owner of Germay. - The Role of Citizens German citizens also have a role to play by addressing workplace inefficiencies, such as excessive sick leave and inefficient workflows, and by adopting responsible consumption practices that prioritize domestic products. Throughout my 30 years in a German company, I have believed that the true strength of German industry lies not just in its technical expertise but in its culture of collaboration and shared responsibility during times of crisis. This model has served as an inspiration globally, and I, too, have grown and learned within this framework. I hope VW reconsiders its approach, realigning itself with the principles of responsible management and collaboration. This is not just about preserving the honor of German industry; it is about offering the global business world renewed hope and direction. I remain optimistic that the German model can still play a pivotal role globally and that VW will stand at its core, leading by example once again.

General Motors (GM) is laying off more than 1,000 employees globally. The layoffs primarily impact GM's software and services division, following a leadership reshuffle earlier this year. The decision to reduce the workforce is not primarily driven by cost-cutting but is intended to streamline operations, focus on high-priority projects, and improve efficiency in developing software-defined vehicles. GM aims to enhance its Super Cruise driver assistance system, refine its infotainment platform, and explore AI applications. These layoffs reflect the broader automotive industry's shift towards software as a key revenue source and a response to recent software-related challenges. GM’s decision to lay off over 1,000 employees, particularly in its software division, highlights the intense pressure on traditional automakers to adapt to a rapidly evolving industry landscape. As vehicles become increasingly defined by their software capabilities, automakers must balance the need for innovation with operational efficiency. While the move could help GM focus on critical areas like autonomous driving and AI, it also underscores the challenges legacy companies face in transitioning to the new era of software-centric vehicles. These layoffs may streamline GM’s path forward, but they also raise questions about the human cost of technological progress and the company's ability to sustain morale and talent in this critical transition phase. #AI #artificialintellienge #layoff #GM #autonomousdriving #software

changes are on the way as AI takes roots

General Motors (GM) aims to reduce fixed costs by $2 billion this year as it faces declining U.S. sales, worsening business conditions in China, and a strategic shift in its aggressive push for electric vehicles due to slower-than-anticipated consumer adoption. Part of this reduction will be letting go of around 1,000 employees to cut costs and adjust priorities in response to changing market conditions. The layoffs impacted various departments. According to CNBC, some were due to performance issues, while others were part of a strategic reorganization. The majority of those affected were located at the company’s global technical center in Warren, Michigan, near Detroit. A small number of hourly workers were also included in the layoffs. #gm #layoffs #reorganization #costcutting

Layoffs at Tesla are the result of a worldwide slowdown in #electricvehicle sales combined with a vicious price war in the Chinese market. More than 10% of the workforce affected include product engineers and software developers mainly located in California. The head of Tesla’s powertrain unit is also departing, a key loss of institutional and product knowledge. For a company who’s founding principal is innovating and constantly implementing product improvements, one wonders if these cuts are tied to the termination of Tesla’s $25,000 Model 2 program? If so, what resources are left to improve the existing product lineup? And after the launch of the resource-draining Cybertruck, does Tesla have the wherewithal to create and produce a new affordable model that would be priced below the Models 3 and Y? Silence on these questions may not be golden for #tesla. #automotiveindustry #ev #automobilindustrie #evs #forecasting #autoforecastsolutions Tesla's global job cuts include leading markets US, China https://lnkd.in/enutmtsn

Sixteen years after the 2008 Great Recession, Chrysler and General Motors faced bankruptcy, and now another domestic automaker is on the brink of layoffs. The core issue lies in the flawed automotive business model of manufacturing vehicles before they are sold. Automakers pass unsold vehicles to Franchised Dealers who take loans to buy them before selling to consumers. Prior to the 1960s, U.S. automakers only built vehicles after purchase. A return to this model is crucial for the industry's profitability. #Stellantis #BusinessModel #Layoffs #Profitability https://lnkd.in/ebGmRWtf

Europe's richest economy is struggling. Recent layoffs and restructurings in Germany 🇩🇪 are sending shockwaves through global industries. Known as “Deutschland” to its residents and “Autoland” everywhere else, it's no secret that Germany's cars are regarded by many as the best in the world. 🇩🇪 Indeed, Europe’s most prosperous business engine runs on automobiles - and that engine is in need of a tune up. 🇩🇪 Current cost-cutting layoffs and proposed German plant closings are sending shockwaves into the global marketplace, with worldwide implications. 🛞 Automakers like Mercedes Benz, BMW, Ford and other industrial giants are cutting costs and employees across the country. 🛞 Perennial powerhouse Volkswagen announced layoffs for tens of thousands of workers and is considering unheard-of plant closings. Reuters reports that Bosch (the world’s largest auto parts supplier, and one of Germany’s biggest employers) will reduce both hours and pay for about 10,000 employees. 🚘 That’s on top of last week’s announcement to cut 5,500 jobs. Economic downturn has spread to other sectors of the economy, as Meyer Werft (a German shipbuilder started in the early 1800’s) recently needed a $423 million (USD) bailout to avoid bankruptcy. Read more about what's happening in Europe, and what it means to the U.S. market: details in the first comment. #germany #autoindustry #economy #economicgrowth #europe