GM said it planned to increase employment in 2024, Reuters reported.

The announcement came amid the talks between the United Auto Workers (UAW) and Detroit’s automakers over a new contract.

Executives from GM, Ford, and Stellantis have emphasised the need to cut labour costs to restructure US factories for EV production, aiming to compete with Tesla and other non union manufacturers.

According to Reuters, Ford said EV production would need 40% less labour compared to internal combustion engine (ICE) vehicles.

“We actually expect our employment numbers to grow in 2024,” said GM manufacturing chief Gerald Johnson.

The company said it would stop the sale of new ICE vehicles by 2035.

Last week, GM voiced concerns about how the United Auto Workers’ (UAW) proposals “would threaten our ability to do what’s right for the long-term benefit of the team”.

Among the proposals, the UAW wants a pay rise of 40% over the four year contract, with a 20% increase upon ratification. The proposals also demanded 5% annual wage increases starting in September 2024.