The trend: Automakers are laying off employees around the world, in part because of lackluster EV sales. Ford, General Motors, and Stellantis are also facing competition in China from Chinese auto manufacturers like BYD and the Geely Group, sharply cutting into their profits.

• Ford will make the biggest cuts this go-round with 4,000 layoffs in Europe and the UK over the next three years. It blamed competition from China and slow demand for EVs.
• GM will lay off around 1,000 employees, about half of whom are based at its tech center in Michigan. That’s on top of 2,700 layoffs and 5,000 buyouts earlier this year.
• Stellantis will cut its Toledo, Ohio, workforce by about 1,100 and decrease production of the Jeep Gladiators manufactured at that plant. The company’s US sales dropped 20% YoY in Q3, in part due to slower Jeep-branded vehicle and Ram truck sales.

Our take: Electric vehicles haven’t been the money-maker automakers were hoping for. Their high costs—the Ford Mustang Mach E is the least expensive of these automakers’ EV stocks, at $41,990—paired with range anxiety have left consumers wanting.

A leaner workforce will help automakers short-term, but to compete in a crowded market, they need to lower sticker prices to entice customers looking for value. Two solutions to boost sales could be adding inexpensive standard features that feel like luxuries or cutting unnecessary features to appeal to those looking for a simple daily driver.

The unknown factor: President-elect Donald Trump. Until Trump takes office, automakers are in a holding pattern as they wait to see if he enacts tariffs on imported goods or eliminates the EV tax credit. Both would have a significant impact on auto sales.

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