China’s largest carmaker to cut thousands of jobs at its joint ventures with GM and Volkswagen
Amid an intense price war and lost market share to BYD and Tesla, China’s state-owned automaker SAIC Motor is reportedly making drastic job cuts this year at its joint ventures with General Motors and Volkswagen and at its EV unit – with mass layoffs a rare move for a China-owned company.
The total number accounts for 30% of employees at SAIC-GM, 10% at SAIC Volkswagen, and more than 50% at its Rising Auto EV subsidiary, two unnamed sources told Reuters.
Mass layoffs by Chinese-owned firms are extremely rare, but the fierce price spearheaded by BYD has potentially forced its hand. In recent year, legacy carmaker SAIC and foreign partners have lost market share to Tesla and privately owned companies such as BYD. In China, there are more than 94 brands offering more than 300 EV models, according to Counterpoint Research, so there is no shortage of competition.
For nearly two decades, SAIC, which employs more than 200,000 people, has been a powerhouse in China, but its sales fell by 16% in the first two months of this year from a year earlier, according to an SAIC filing.
According to the report, the layoffs won’t all happen at once but are aimed for this year. Sources told Reuters that the bulk of the firings will happen via “implementing stricter performance standards and offering payouts to lower-rated employees who resign.”
SAIC refutes the claim, however, telling Reuters that the company doesn’t plan to downsize, and a spokesperson had no comment regarding efforts by the company to force low performers to resign or other strategies to reduce staff. In fact, SAIC said that it had recruited 2,000 employees earlier this year.
A VW spokesperson, however, declined to comment on the layoffs but added that employee performance reviews were a “long-term mechanism” to ensure “every employee can be qualified for their job requirements.”
According to the report, SAIC has a pressure-cooker-style rating system for employees from A to D, with employees rated D offered payouts to quit, while C-rated employees are put into “uncomfortable positions” forcing them to quit, the sources said. Last year, about 10% of SAIC-VW employees, for example, received a C or D rating. Also, these ratings apply to “white-collar professionals,” not factory workers, the source said. At this point, it’s unclear whether or not factory workers are included in the planned layoffs.
For its part, SAIC Volkswagen makes the ID.3 EV and Audi-branded vehicles, among other models. SAIC-GM makes Chevrolets, Buicks, and Cadillacs.
In China, EV sales account for 23% of total car sales, with that number on the rise. Of course, China granted Tesla a special exception from its longstanding requirement of making foreign automakers form joint ventures with Chinese-owned firms. Tesla set up its wholly own entity in China in 2018 in Shanghai, where it produces its biggest global output.
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Germany is about to become home to Europe’s largest battery storage system – a massive 1 gigawatt (GW) / 4 gigawatt-hour (GWh) project in Jänschwalde, Brandenburg.
LEAG Clean Power GmbH and Fluence Energy GmbH, a subsidiary of US-based Fluence Energy (NASDAQ: FLNC), are teaming up to build the “GigaBattery Jänschwalde 1000.” The four-hour system will use Fluence’s Smartstack technology, its latest large-scale energy storage solution.
Once complete, Europe’s largest battery storage project will play a key role in stabilizing Germany’s grid and storing renewable power for when the sun isn’t shining and the wind isn’t blowing. It’s designed to deliver essential grid services, support energy trading, and boost energy security as the country phases out fossil fuels.
LEAG’s broader “GigawattFactory” plan combines solar and wind farms with flexible power plants and large-scale batteries across Germany’s Lusatian energy region. “By constructing gigascale storage facilities, we’re addressing one of the biggest challenges of the energy transition: ensuring constant power regardless of the availability of renewable energies,” said Adi Roesch, CEO of the LEAG Group.
Fluence CEO Julian Nebreda described the project as a “milestone for the energy future of Germany and Europe,” adding that it demonstrates how collaboration and cutting-edge technology can “transform the foundation of our economy and our everyday lives.”
The German government recently reaffirmed the importance of storage in building a secure and affordable clean power system. With this 4 GWh giant, LEAG and Fluence are implementing that priority in one of Europe’s most coal-heavy regions.
Read more: Battery boom: 5.6 GW of US energy storage added in Q2
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![The Genesis GV90 is shaping up to be a real stunner [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2024/11/Genesis-GV90-ultra-luxury-SUV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
The GV90 will be the brand’s largest, most luxurious SUV yet. With its official debut coming up, a production version of the Genesis GV90 was spotted in public for the first time, offering a closer look at the stunning SUV.
The Genesis GV90 is a stunning flagship SUV
Genesis vehicles already have a unique design that’s hard to miss. The big Creste Grille, Two-Line Quad Lamps, and smooth character lines offer a refined, luxurious look, but Genesis is planning to take it to the next level with the GV90.
The GV90 is an “ultra-luxe, state-of-the-art SUV,” according to Genesis. It will be the luxury brand’s new flagship vehicle and first full-size electric SUV.
We got our first look at the flagship SUV last March after Genesis unveiled the Neolun concept at the New York Auto Show.
The GV90 has been spotted out in public several times now, even flashing high-end features like coach doors and adaptive air suspension, but now, we are finally getting our first look at the production version in real life.
A new video from HealerTV shows the production version of the Genesis GV90 in action. Although it’s still covered in camo, you can see a few slight design changes from the concept shown last year.
The headlights and grille appear closer in design to its current vehicles, but other than that, the GV90 looks essentially the same up front as the Neolun concept.
Since it’s still covered, it’s hard to see where the headlights are connected at this point. From the side and rear, the GV90 looks identical to the concept.
Genesis has yet to announce an official launch date, but the GV90 could debut by the end of the year with sales expected to kick off in mid-2026.
The flagship SUV is rumoured to be the first vehicle to debut on Hyundai’s new eM platform, which it claims will “provide 50% improvement in driving range” compared to its current EVs. It will also serve as a tech beacon, featuring Hyundai’s most advanced connectivity and safety tech.
We will learn official prices and final specs soon, but one thing is for sure: it won’t be cheap. The Genesis GV90 is expected to start at around $100,000, but higher trims could cost significantly more with added features and options.
Genesis is also introducing its first hybrid, the GV80, next year, followed by its first extended-range electric vehicle (EREV) based on the GV70. The EREV is expected to launch in late 2026 or early 2027. There’s also an off-road SUV in the works, which will likely arrive as a 2027 model.
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