AD #4169 – GM Lays Off Thousands Of EV Workers; U.S. VW Workers Authorize Strike; Tariffs & China Drag Mercedes Down

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

U.S. MAKES DEALS W/ CHINA & SOUTH KOREA
President Trump just made a couple of trade deals that should give automakers some relief. China has agreed to delay export controls on rare earth minerals introduced earlier this month for one year. However, the export curbs which were implemented in April, which caused shortages and led to several automakers halting production, still remain. The U.S. also reached a deal with South Korea to lower car tariffs on Korean imports from 25% to 15%. And that’s good news for Hyundai, which said tariffs cost it $1.3 billion in the third quarter.

GM LAYS OFF THOUSANDS OF EV WORKERS
In response to slowing EV demand, General Motors is laying off thousands of workers. The automaker will cut output at its Factory Zero plant in Detroit, which makes its full-size electric pickups. It’s switching to a one-shift schedule in January, an output cut of about 50% and which will result in 1,200 workers being laid off indefinitely. In addition to that, GM is going to idle production at its battery plants in Ohio and Tennessee in January for about six months. That will result in 1,550 temporary layoffs, however an additional 550 employees will be laid off indefinitely at the Ohio battery plant.

        

NEW MODELS HELP DRIVE EU SALES UP
Car sales were strong in Europe in September. According to the ACEA, the European Automobile Manufacturers’ Association, automakers sold more than 1.2 million vehicles last month, up nearly 11% compared to a year ago. Hybrids are the largest segment of the market with nearly 435,000 units sold, up 15%. More than 260,000 fully-electric vehicles were sold, a gain of about 22%. And plug-in hybrid sales soared 62% in September. While the electrified segment was strong, ICE vehicles struggled. Gas powered car sales were down nearly 8%, to about 303,000 units and diesel sales were down 15%. This is the third consecutive month sales have increased in Europe, which the ACEA says is somewhat driven by new model launches.

Europe September, 2025 Car Sales
Total	1.24 Million	+10.7%
Hybrid	435,000	+15.3%
BEV	260,000	+21.9%
PHEV	132,000	+62.1%
Gas	303,000	-7.9%
Diesel	78,000	-15.5%

TARIFFS & CHINA DRAG MERCEDES DOWN
Mercedes had a rough third quarter. The automaker sold 441,000 vehicles, down 12% from a year ago and its revenue came in at €32 billion, a drop of 7%. Mercedes’ EBIT plunged 70% to €750 million but when adjusted for one-off effects like restructuring costs and voluntary layoffs, its EBIT was €2.1 billion, a decline of 17% from last year. And Mercedes net profit of €1.2 billion was a 31% drop. The company blamed the rough quarter on tariffs, and the price war and heavy competition in China.

Mercedes-Benz Q3, 2025 Earnings
Sales	441,453	-12.3%
Revenue	€32.1 Billion	-6.9%
EBIT	€750 Million	-70.2%
Adjusted EBIT	€2.1 Billion	-17.3%
Net Profit	€1.2 Billion	-30.8%

U.S. TURNAROUND FUELS STELLANTIS GROWTH
Stellantis also reported some more of its third quarter results and much of its growth is thanks to its turnaround efforts in the U.S. Globally, it sold 1.3 million vehicles, an increase of 13%. And that pushed its net revenue to just over 37 billion euros, which was also up 13%. But it’s possible the future might not be so rosy. The company estimates a 1 billion euro hit from tariffs as well as one-time charges related to changes around its warranty process and doing things like pulling back on EVs. New CEO Antonio Filosa has made smart moves, like bringing back the HEMI, cutting lineup complexity and working down inventory, but that seems more like some of the easy stuff to do. The hard part is coming up.

Stellanis Q3, 2025 Earnings
Sales	1.3 Million	+13%
Net Revenue	€37.2 Billlion	+13%

BMW LETS YOU CHANGE LANES WITH YOUR EYES
BMW’s new driver assistance system will let you change lanes with your eyes. That’s one of the features the new iX3 just received approval for in Germany. Its Motorway Assistant will operate up to 130 km/h or about 80 miles an hour and drivers can approve lane changes by glancing at either side-view mirror. The system will stay active through freeway junctions and all the way to the end of your exit and it can also suggest lane changes before you come up to those areas, which can be confirmed with a glance at the mirror as well. BMW says the type of approval it received will also allow it to launch these features in many more European countries. The company’s City Assistant, which offers hands-free driving in urban areas, will be available when the iX3 goes on sale, but only in Germany. Beyond this version of its hands-free driving system, BMW says it’s developing a more symbiotic relationship, where the driver can turn the wheel or apply the brakes slightly, but the system still stays active.

U.S. VW WORKERS AUTHORIZE STRIKE
UAW workers at VW’s plant in Tennessee voted in favor of a strike authorization. That doesn’t mean there will be a strike, it just gives the local union the authority to strike if it wants to. But I think this is at least some reflection of how the workers feel about the contract negotiations, which have dragged on for about a year and a half. The UAW says a supermajority of members voted in favor of the authorization. That means at least two-thirds of the 3,200 workers want their union to have the power to strike. VW doesn’t want to see that happen and offered a $1,500 bonus if the contract was approved by tomorrow. But the UAW doesn’t think VW’s latest contract provides enough to workers, while VW said it submitted its last, best and final offer. So, that’s why we’ve reached this point today. If there is a strike, workers will receive $500 in weekly strike pay and medical care will still be covered.

NEXPERIA CHIP SHORTAGE SPREADING AROUND THE WORLD
The Nexperia chip shortage is starting to impact production around the globe. Honda says it has cut and idled production at some plants in North America. The ACEA, the group that represents European automakers, warned yesterday that automakers in the region will have to halt production in the coming days. Down in Brazil, government officials are warning that automakers will have to stop production in two to three weeks. And production in the U.S. could be impacted in the next couple of weeks.

  

Don’t forget to tune into Autoline After Hours later today. We’ll have judges for Wards talk about the 10 Best propulsion systems. Plus, we’ll talk about autonomous vehicle’s possible impact on powertrains and Stellantis’ old CEO keeps talking. But should we listen? Join us when the action goes live at 3PM EST.

Thanks for tuning into today’s Autoline Daily and I hope to see you later.