GM refutes layoff rumors, underscores the significance of the Chinese market

On August 14, GM China clarified the reports about its layoffs and downsizing of the R&D department in China. GM China clearly stated that the partnership with SAIC and the commitment to the long-term development of joint ventures remains unchanged.

GM China reaffirmed its commitment to continue providing high-quality products and technologies to Chinese consumers, and has prepared for future product planning. Paul Jacobson, GM's chief financial officer, pointed out at a recent investor conference that China's business is of great significance to the company's current and future development. To achieve long-term development goals, the cooperation and communication between GM and SAIC is being strengthened to achieve profitability and sustainable development.

On August 13, there were rumors that GM was planning to lay off staff in China and shrinking the size of departments including R&D.

In response to the layoffs, GM China stated that GM did indeed launch a new assessment plan at the beginning of August, but the plan is aimed at investing in talent, increasing company competitiveness and is globally oriented. Specifically, the plan strengthens the incentive mechanism for outstanding employees, while clearly defining the elimination mechanism for underperforming employees.

On the issue of GM's future development in China, an informed source revealed that the new leadership of Shanghai GM is communicating with the North American side, and there will be some new progress at that time.

A short while ago, SAIC announced a series of significant personnel changes. Among them, Lu Xiao, the former executive vice general manager of Pan Asia Automotive Technology Center, replaced Zhuang Jingxiong as the general manager of SAIC-GM; Wang Conghe, the former deputy general manager of Pan Asia Automotive Technology Center, replaced as the executive deputy general manager; Cai Bin, the former assistant to the president of SAIC, served as the party secretary of SAIC-GM; Xue Haitao, the former deputy general manager of SAIC-GM Wuling, replaced Lu Yi as the deputy general manager, responsible for related work in market marketing.

SAIC's production and sales express data for July showed that the sales of SAIC-GM in July had fallen to 15,000 units, down 82.42% year-on-year and 42.35% month-on-month. From January to July this year, the cumulative sales were 240,579 units, a year-on-year decrease of 55.14%. The production in July was 13,661 units, a year-on-year decrease of 84.51%.