EV transition upends auto industry with rash of layoffs, buyouts, production cuts, bankruptcy

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Heavy spending on electric vehicles that don’t make a profit is forcing American automakers to slash more than just their production of gas-guzzling cars: they’re also slashing thousands of jobs.

EV business will not be profitable until late 2026 and will be in the red by $3 billion this year, similar to its losses from EVs over the past two years.

The United Automobile Workers union responded to the loan, which was announced after the first round of“Not only is the federal government not using its power to turn the tide – they’re actively funding the race to the bottom with billions in public money,” UAW President Shawn Fain said. “Why is Joe Biden’s administration facilitating this corporate greed with taxpayer money?”

Ohio-based Lordstown Motors filed for Chapter 11 bankruptcy protection this week after electronics company Foxconn pulled back on a $170 million investment because Nasdaq threatened to delist Lordstown over its weak share price. “There’s been a rush of industry investment that began as a trickle and became a flood, and while growth is continuing, the industry is working through their strategy to stay on top of the waves,” Ms. Hayward said.

 

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