General Motors is cutting over 1,000 jobs globally in its software and services division as part of a cost-cutting strategy to streamline operations and invest in emerging technologies like electric and software-defined vehicles. The layoffs follow recent leadership changes and reflect the auto industry’s response to a potential downturn and increasing competition in markets like China.
Texas Attorney General Ken Paxton has filed a lawsuit against General Motors, alleging the automaker collected and sold detailed driving data from its vehicles without customer consent. The lawsuit follows an investigation that uncovered “egregious business practices” violating Texan privacy and potentially impacting insurance premiums.
General Motors is reportedly downsizing its workforce in China and restructuring its operations. The company is facing intense competition from local brands in the world’s largest car market. This move reflects a strategic shift towards electric vehicles, upscale models, and imported premium vehicles.
Vivek Chaand Sehgal, the richest Indian living in Australia, built his fortune from humble beginnings as a silver trader. Through strategic pivoting and the establishment of Samvardhana Motherson Group, a leading auto component manufacturer, Sehgal has become a global business titan.
Car companies are increasingly adopting controversial subscription models, locking features and capabilities that were previously included in the purchase price behind additional fees. This practice, exemplified by Tesla’s range-unlocking upgrade and BMW’s heated seat subscription, raises concerns about fairness and transparency. While automakers seek new revenue streams, these subscription models often feel like holding drivers hostage to their own vehicles.
German automaker Volkswagen, having invested heavily in India, is exploring selling its stake in the Indian market due to low sales and competition. The company’s expensive European cars have failed to capture significant market share. Volkswagen is now focusing on developing affordable cars and advocating for lower taxes on hybrid vehicles in India.
A group of hackers has demanded millions of dollars in ransom to end a cyberattack on CDK’s software systems, disrupting operations at auto dealerships across the United States. CDK, a major provider of software to car dealerships, has reportedly decided to pay the ransom. The attack, which has caused a three-day outage, has impacted several major auto retailers, including Sonic Automotive, Penske Automotive, and Ford dealerships.
Tata Motors, India’s leading automaker by revenue, will increase the prices of its commercial vehicles by up to 2% from July 1. This price hike aims to offset the impact of rising commodity prices. The increase will apply to all models and variants of commercial vehicles, with specific percentage adjustments varying depending on the model.
Nissan Motor has unveiled four new electric vehicle (EV) models at China’s largest auto show, Auto China, showcasing its commitment to the Chinese market. Despite intense competition and a price war, Nissan plans to introduce eight new models by 2026 through its joint venture with Dongfeng Motor. The company aims to expand its product lineup with more EV and hybrid cars, targeting sales of over 1 million units in China by 2026. Nissan also announced plans to start exporting vehicles produced in China next year, including 100,000 units in the initial phase.
Within a month of its launch in late March, Chinese smartphone giant Xiaomi has secured over 75,000 orders for its SU7 electric sedan. The company’s founder, Lei Jun, announced the milestone during the Beijing auto show, setting a record for electric vehicle (EV) startups. Xiaomi aims to deliver over 10,000 units in June and targets more than 100,000 deliveries for the SU7 in 2024. To meet the demand, the company has brought forward deliveries of different SU7 models. The SU7’s competitive pricing, inspired by Porsche styling and undercutting Tesla’s Model 3, has sparked an EV price war in China. Xiaomi’s auto team of 6,000 is actively recruiting global talent to support its ambitious car-making plans.
