EV Market Expects Quick Recovery after Coronavirus 

The coronavirus pandemic is bringing unprecedented changes in the EV sector. For the first time in many years, we see negative impacts on car record sales. The US automotive industry has not had much going on for it during the pandemic season. This has affected both the EV market as well as the internal combustion engine market.  The effect is so much until the car industry experienced a 23% drop in sales this year.  However, companies are putting measures in place to mitigate the effect of the Coronavirus.

 These solutions are mergers between different players in the sector, hoping to unite their workforce while streamlining their manufacturing processes. Companies like GM are merging with fellow carmaker Honda while Fiat is joining forces with French-based car manufacturer PSA. There is so much that top executives in car making companies are turning to the labour in companies to save operational costs. This effect is due to the cost of shifting operations from manufacturing internal combustion engines to developing electric vehicles’ individual lines. Individual carmakers are facing huge debt to cover while also struggling with lower sales records.  The most affected part of the production, however, is labour as manufacturing electric vehicles is more focused on machine assembly rather than labour-based assembly. 

General Motors is currently being praised by all members of The United Auto Workers Union.  General Motors decided to sell the factory to an upcoming company that planned to enter the EV market.  The decision is a bold move as workers that were previously on General Motors payroll or conveniently transferred under the new EV manufacturer’s reins.  This was a bit average compared to the company’s option to lay off its workers and sell the remaining company assets. 

According to Terry Dittes, Vice President of the United Auto Workers Union, GMC’s decision is a show of commitment to its importance on the staff’s skill and experience.  However, the good news will come for the electronic vehicle industry as Korean-based company LG plans to open up a battery manufacturing plant next to the General Motors closing plant. The new plant from LG has an estimated employment range of 1100 employees.  However, these new workers will come in at a lower rate compared to other workers before with a starting salary of $17 per hour. There are high hopes that the automotive industry is changing for the better. Despite the unprecedented fall in demand for cars, there are speculations that the industry will recover