Automotive weekly roundup: Tesla layoffs, governors protest unions, Mexico refuses incentives

Earlier this week: A leaked internal memo reveals that Tesla will lay off 10% of its global workforce after quarterly sales declined. New car inventory levels continue surging as the year’s best-value models emerge. General Motors will move from its home of nearly 30 years to the Hudson’s Detroit building. Governors from six southern states issue a statement warning residents against unions as Volkswagen workers vote on whether to join the UAW. Mexico reportedly denies incentives to BYD and other Chinese automakers due to pressure from U.S. officials.

1. Tesla to lay off thousands of employees worldwide after Q1 sales disappoint

Tesla plans to lay off more than 10% of its employees worldwide, according to an internal memo leaked earlier today. In the document, Tesla CEO Elon Musk wrote, “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity…As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally.” Read More

2. New-car inventory rises and best-value cars for 2024 revealed, Cars.com report

According to the most recent Cars.com report, new-car inventory is on the rise—particularly in the under $30,000 segment—marking a significant recovery. Vehicles now average 65 days on the market, more than double the time compared to the peak pandemic shortage period. Additionally, the report indicates that the average list price for new cars has dropped to its lowest point in over a year. Read More

3. General Motors to move headquarters next year after almost 3 decades

General Motors will move its headquarters from its home of nearly 30 years to the new Hudson’s Detroit building located on Woodford Avenue. The move is scheduled to take place over the course of next year. General Motors says it will work with developers to ensure its current headquarters, the Renaissance Center overlooking the Detroit River, will be put to good use following its departure. The company has owned the facility outright since 1996, when it paid for the building in cash. Read More

4. Governors share anti-union statement ahead of key VW vote

Republican governors from six states have issued a statement warning residents against unionization as employees at Volkswagen’s Tennessee plant prepare for a vote to decide whether they will join the United Auto Workers (UAW) union. On April 16, one day before the vote was scheduled, the state leaders wrote that further unionization in the South would deter businesses from opening facilities in the region. Read More

5. Mexico denies BYD, other Chinese car makers, access to incentives

Mexico has reportedly denied Chinese automakers access to government incentives due to pressures from U.S. officials. According to a Reuters report, Mexican officials met with BYD, a major Chinese automaker, in January, marking the last meeting between both parties to date. During their conversation, company executives were told the brand would not be eligible for government subsidies, previously awarded to manufacturers for building facilities in the country, and that further talks with any China-based car brand were on hold indefinitely. Read More

6. Depreciation study shows EVs lose value fastest – Karl Brauer | iSeecars

A study by iSeecars.com sheds insight on cars that lose the most value after just one year and those that retain the most value. It may be surprising to some, but several EVs made the list. Joining us on today’s episode of Inside Automotive is Karl Brauer, Executive Analyst for iSeecars.com. Watch More

7. Industry expert warns against overreliance on EVs, advocates for consumer-driven options – Joe McCabe | AutoForecast Solutions

Despite the push towards EVs, the adoption rate has been notably slower than many expected. On today’s episode of Inside Automotive, we’re discussing EV adoption in the U.S. and why we’re seeing a shift in plug-in electric hybrid strategies right now. Joining us with more on this is Joe McCabe, the President and CEO of AutoForecast Solutions. Watch More

8. How to incorporate employee feedback and win more talent — Gloria Purdy | Hoffman Auto Group

Listening to employee feedback is more than a simple strategy for keeping workers happy. It is a critical component of your dealership’s talent acquisition and retention strategies. On this episode of Inside Automotive, host Shyann Malone is joined by Gloria Purdy, director of the Hoffman Auto Group’s Talent Engagement Center. Now, Purdy discusses the role employee feedback plays in spurring productivity and offers simple solutions for listening to and engaging with workers. Watch More