The automotive industry is experiencing several notable developments as of December 15, 2023. The key stories shaping the industry include advancements in electric vehicle (EV) sales, shifts in market dynamics, layoffs at major companies, and challenges faced by certain automakers.
- Rise in Electric Vehicle Sales and Dealerships: The percentage of car dealers selling electric vehicles has significantly increased since 2020, growing from 16.5% to 55.1%. This increase reflects a broader industry shift towards electric vehicles, as evidenced by a 200% increase in the number of non-Tesla dealers selling new EVs and an 800% rise in their market share.
- Market Predictions for 2024: Edmunds, a car buying platform, predicts that around 15.7 million new cars will be sold in 2024, a slight increase from the projected 15.5 million in 2023. This prediction indicates a generally stable market, with electric vehicles expected to constitute about 8% of all new car sales in 2024, up from 6.9% as of November 2023.
- General Motors’ Staff Reductions: General Motors’ subsidiary, Cruise, a robotaxi service, has announced the dismissal of nine leaders and the layoff of 900 employees. This decision comes amidst investigations and government action following an incident where a pedestrian was dragged by a self-driving vehicle.
- Expansion Plans of Scout Motors: Scout Motors, a Volkswagen electric subsidiary, plans to expand its U.S. presence by building a new product design and engineering facility in Novi, Michigan. This Innovation Center will focus on the production of its
electric truck and create new jobs in the area. - New Car Inventory Challenges for Stellantis: Stellantis is facing significant inventory challenges, with an excess of certain models. This situation is partly attributed to pricing strategies and the shift towards new models.
- General Motors to Cut Jobs: In addition to Cruise’s layoffs, General Motors is set to lay off 1,300 workers at two Michigan plants as part of its strategy to end the production of certain vehicles.
- Tesla Avoids Recall in Europe: Tesla has managed to avoid a recall in Europe over concerns related to its Autopilot safety features. This decision is a positive outcome for Tesla amidst various challenges faced by the company in different markets.
- Volkswagen’s Positive Sales Trend: Contrasting the challenges faced by some automakers, Volkswagen reported a significant increase in its deliveries, with a 22.6% rise in November 2023.
