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Car Companies Eliminate 38,000 Jobs Worldwide In Six Months

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From the United States, Canada, Germany, the UK, and other nations; auto makers have announced a minimum of 38,000 job cuts over the past six months, globally.

Autonews reported that this could just be the tip of the iceberg for 2019, as Dieter Zetsche, Daimler’s ex-CEO recently provided a warning of sorts around massive cost decreases ahead that many should prepare for due to an unprecedented upheaval within this auto sector. The auto market seems to be currently looking at a major downturn in the months ahead.

As such, car companies are closing factories and cutting shifts across the map, with many automakers also looking to eliminate salaried workers upon the reflection of sluggish sales within the two largest markets across the globe: the United States and China. Additionally, there seems to be a pivot when it comes to car manufacturers as they look towards a future of self-driving cars and electric vehicles (EVs).

In fact, Ford recently announced 7,000 salaried jobs were going to be eliminated within their company, reflecting 10% of their office employees around the globe.

Daimler is looking at six billion euros ($6.75 billion USD) when it comes to cost efficiencies and gains for its Mercedes passenger car unit by 2021, as well as an added two billion euros within its truck sector.

Plus, higher tariffs, which is currently being threatened by U.S. President Donald Trump against China, could exacerbate the issue. A trade group that represents a number of the largest foreign and domestic car companies sent out a warning as of late that these tariff hikes could place 700,000 jobs within the United States at risk.

Sales around global light vehicles decreased to just over 94 million last year, with a rate of 0.5%, which is the first yearly drop in worldwide sales in about a decade. Another projected 0.3% drop is expected this year.

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