The Automotive Update: Risk of further automotive job cuts
28 February 2025
More automotive job cuts are planned, a new gigafactory for the UK, and new models and concepts are announced. Autovista24 journalist Tom Hooker explores the week’s headlines.
Which carmaker is testing solid-state batteries? How is Tesla progressing with its Robotaxi service, and what is the EU asking of India? Find out in the latest edition of The Automotive Update from Autovista24.
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Potential job cuts across the industry
Skoda plans to shrink its workforce indirectly by 15%, even with aspirations to sell over one million cars a year. Skoda boss Klaus Zellmer made the announcement at the recent Automobilwoche Conference. The manufacturer employs around 41,000 people, with jobs going through natural fluctuation rather than direct losses.
Meanwhile, Audi is aiming to reduce personnel costs by €1 billion a year, according to Handelsblatt. As part of a reorganisation process, the carmaker also wants to cut material costs by up to €8 billion by 2030. This equates to an average of €1.6 billion a year. The company will have to rely on severance payments, voluntary redundancies or retirements, as employees have a job security programme in place until 2029.
Mercedes-Benz plans to cut 25% of workforce costs in China by 2027, according to Reuters. The report suggests there will be a 10-15% staff reduction in its sales, finance, IT service and legal department. The company employs around 5,000 people in China. This includes 2,000 workers in its research and development division that will not be affected by the cuts.
In the UK, Nissan has cancelled night shifts on one production line at its Sunderland plant, according to the BBC. A spokesperson for the company said no jobs would be lost because of the changes.
Aston Martin has also said it will cut around 5% of its global staff, as reported by Reuters. This is to lower costs and boost future investments. The brand expects to save about £25 million pounds (€31.3 million) from the job cuts.
New models from Kia
Kia has revealed several new models as part of its EV Day. First, the carmaker unveiled the EV4, a battery-electric vehicle (BEV) which will be offered with 58.3kWh or 81.4kWh battery.
The model will be available as a hatchback or sedan. When it comes to range, the sedan with the smaller battery can travel 430km on a single charge. Meanwhile, the bigger battery provides 630km. The hatchback will have a range of 590km according to WLTP standards.
The hatchback is primarily aimed at the European market, meaning it will only be produced in Slovakia. The model launch is currently expected in the second half of 2025.
The Korean carmaker also unveiled the Kia Concept EV2, a vision of an upcoming B-segment BEV. The SUV has a multi-configurable interior and innovative rear-hinged back doors. It is expected to launch in Europe and other regions in 2026.
Both models were presented alongside the PV5. This is the marque’s first platform beyond vehicle (PBV) model which was shown in four variants. Kia will get a helping hand from Samsung, which has partnered with the carmaker to work on PBVs.
Independent gigafactory for the UK
Volklec has announced a new gigafactory could be built in the UK. The project, backed by former Britishvolt shareholders and a Chinese supplier, could see an independent site located in Coventry.
If successful, the venture between Volklec and Far East Battery would become the UK’s only large-scale non-carmaker-backed battery manufacturer. The battery manufacturing plant aims to have a capacity of 10GWh and could provide more than 1,000 jobs by 2030.
Volklec plans to begin production on a smaller scale. This means manufacturing battery cells for e-bikes and energy storage, according to the Financial Times. The venture is targeting automotive, aerospace and marine power cell production in 2026.
Tesla Robotaxi permit application
US carmaker Tesla has applied for a permit in California, usually associated with chauffeur-operated services, according to Reuters. This represents the first phase of a series of regulatory approvals required for the brand to eventually launch a robotaxi service.
Tesla currently has the approval to test autonomous vehicles with a safety driver on board in California. However, it does not have a permit for driverless testing or operations from the state’s Department of Motor Vehicles. The manufacturer would need this documentation to apply for a driverless taxi service in California.
Solid state of affairs for Mercedes-Benz
Mercedes-Benz has begun road testing solid-state batteries. The company claims the technology is safer, lighter, and more efficient. This means a 25% longer range in its test vehicle, a modified version of the Mercedes-Benz EQS.
The carmaker has drawn on expertise from its passenger car and Formula One team engineers. These teams have developed and patented the solid-state battery pack, which gives its development vehicle an expected range of over 1,000km.
EU talks trade with India
The EU is planning to ask India to lower its high tariffs on several products, including cars. The aim is to increase trade between the two regions. According to Reuters, the bloc wants to build relations, while reducing its reliance on China.
An anonymous senior EU official stated: ‘The Indian market is relatively closed, especially to key products of commercial interest to the European Union and our member states’ industries, including cars.’
