Just Auto

Daily Newsletter

08 August 2023

Daily Newsletter

GM to boost worker count

Automakers need to cut labour costs to restructure US factories for EV production

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.

AI is a key part of the digital revolution shaping the automotive sector

GlobalData estimates the total AI market will be worth $909 billion in 2030, having grown at a CAGR of 35% between 2022 and 2030. The automotive sector is undergoing a digital transformation fuelled by changing global supply-chain dynamics, tighter market competition, and rising inflation. AI is a key part of this digital revolution. Focus is directed toward driver assistance features for safety and hazard detection and greater automation of many vehicle processes and functions. Simultaneous localization and mapping (SLAM), facial recognition, and motion tracking will be vital for developing incockpit safety features such as early driver fatigue detection. For the most part, the automotive sector will not play a significant role in creating and developing generative AI hardware or platforms. Instead, it will be a key driver for innovations in machine learning platforms and associated IoT hardware for autonomous driving and ADAS. This will also help to drive advances and greater scale-up of adoption of these AI technologies in adjacent sectors such as travel and tourism and construction.