AD #4327 – Volkswagen Doubling Job Cuts To 100,000 In Germany; Polestar Denied Permission to Sell Vehicles in U.S.; GMC Debuts Redesigned 2027 Sierra

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

VOLKSWAGEN DOUBLING JOB CUTS TO 100,000 IN GERMANY
The situation in Europe is going from bad to worse. Earlier this year the Volkswagen Group said it was going to get rid of 50,000 jobs in Germany by the end of the decade. Now, it’s reportedly upping that to 100,000, and plans to close assembly plants in Hanover, Zwickau, Emden and Neckarsulm. Or, at least, that’s the plan. IG Metall, the powerful German union, says it will do everything in its power to prevent the layoffs. So, we think this is going to get ugly. And investors don’t like what they’re seeing. Volkswagen AG’s stock is down 28% so far this year. 

RENAULT CUTTING 800 ENGINEERING JOBS IN FRANCE
Meanwhile, Renault says it’s going to get rid of 800 engineers in France by the end of next year. It’s all about lean engineering to better compete with Chinese automakers. Here’s why we think it’s getting rid of so many engineers. Renault spun off its powertrain operations to the company called Horse. The new Twingo was developed at the company’s R&D center in China. And that’s where it’s going to do all its development for software defined vehicles.

 

TESLA BOOSTING PRODUCTION AND JOBS IN BERLIN 
But the problems in Europe are with legacy automakers. Chinese automakers are having a grand old time on the continent. And Tesla says it’s going to boost production at its plant in Berlin by 20%. It’s going to add another 1,000 workers to the line, which comes on top of the 2,500 jobs it announced last month in Germany to make batteries. Tesla sure has turned things around in Europe. After Elon Musk interjected himself into European politics two years ago, Tesla’s sales plummeted. But now, with high gas prices triggered by the Iran war, Europeans are shrugging off their Musk phobia. Last month Tesla sales in Europe shot up 107%. 

ZOOX REDESIGNS ROBOTAXI FOR MASS PRODUCTION
The robotaxi business keeps getting more and more interesting. Zoox, which is owned by Amazon and makes its own robotaxi in California, says it’s going to redesign the vehicle for mass production. While the styling and size won’t change, it expects to be able to ramp up production to 100 units a week with the redesign. 

NHTSA PROPOSES DROPPING BRAKE PEDAL IN ROBOTAXIS 
And hot on the heels of that, NHTSA is proposing to drop the brake pedal requirement for robotaxis. We think it’s a good first step, but NHTSA should also give the old heave-ho to the gas pedal, steering wheel, turn signal stalks and the mirrors. In fact, we think people in the future are going to wonder what the heck those things were used for.

U.S. DENIES POLESTAR PERMISSION TO SELL CONNECTED VEHICLES
Polestar just got bad news, it can no longer sell new vehicles in the U.S. The government is now restricting the import and sales of cars with connected vehicle technology linked to China, starting with the 2027 model year. Polestar, which is owned by Chinese automaker Geely, sought an exemption to continue selling its vehicles but was denied by the U.S. Commerce Department. Polestar says it will continue selling its existing models and provide access to its service network but it won’t appeal the decision. The denial is a bit surprising. Volvo, which is also owned by Geely, received authorization to continue selling new vehicles. And the Polestar 3 is built in the U.S. at Volvo’s plant in South Carolina. However, this may not be that big of a setback for Polestar, it has increasingly pivoted to Europe and the U.S. only accounted for 6% of its sales in the first quarter of the year.

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UAW MONITOR ACCUSES SHAWN FAIN OF WRONGDOING
UAW President Shawn Fain is being accused of wrongdoing again by the union’s court appointed monitor. Neil Barofsky, who was assigned to watch the UAW’s governance, alleges Fain stripped UAW Vice President Rich Boyer of his duties as chief negotiator with Stellantis after he refused to approve a bonus for Fain’s fiancée as well as workers comp benefits for her sister. Fain is also alleged to have retaliated against a senior official at the UAW who refused to approve payments for organizing efforts that didn’t meet certain rules. Fain claims the allegations are “false” and that they’re politically motivated. The UAW also released a statement questioning the timing of the report, since it votes for a new president later this year.

GMC DEBUTS REDESIGNED 2027 SIERRA
Last week Chevy showed off the new Silverado, so now GMC is showing off the new Sierra. It will share the same powertrain lineup, including a 2.7L 4-cylinder, 3.0L Duramax diesel and a new 5.7L and 6.6L V8. While GM still isn’t sharing output numbers for the V8s, it does say they feature a new injection system as well as tweaks in the combustion, cooling, and control systems. The interior is highlighted by multiple display screens, including an available one for the front passenger, as well as a multi-functional center console and huge speakers built into the headrests. Look for the new 2027 Sierra to hit dealers before the end of the year and as we said before, full-size trucks are very important to GM. Last year the Silverado and Sierra accounted for nearly a third of the automaker’s sales. 

CITROEN UNVEILS OFF-ROAD C3 AIRCROSS CONCEPT
Does every automaker think that its customers want to go on an off-road adventure? Brands that you would never expect are exploring the segment. Now including Citroen, which debuted a new concept version of its C3 Aircross. The model features new bumpers, wider wheel arches and bigger tires, fog lamps, tow hooks, a roof rack and a number of unique touches inside and out. We think it’s a cool look, but there’s no mention of making a production version. 

BMW UPGRADES TO FIGURE 03 HUMANOID ROBOTS
Last year, BMW began testing humanoid robots at its plant in South Carolina and now the automaker is expanding to the next-gen version. BMW is using humanoids from a company called Figure and the initial test had them supporting production of 30,000 X3s over ten months. The robot, called the Figure 02, worked in the body shop, placing sheet-metal panels for welding. Now, the next-gen version, called the Figure 03, will be used in logistics to help sort components that are then transported to the line for installation.

But that brings us to the end of today’s show. Thanks for making Autoline a part of your day and I hope that you have a great weekend.