AI Layoff Deception, GM’s Earnings Dip & Truck Refresh, California Tech Apprenticeships

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Episode #1101: Today we talk about how AI is quietly reshaping the workforce under the guise of “restructuring.” GM reports a profit dip but revs up electrified truck updates to meet shifting demands. Finally, California launches an innovative apprenticeship program to tackle the auto tech shortage head-on.

• GM’s Q2 net income fell 35%, hit by $1.1 billion in tariffs, but the company holds firm on full-year profit goals. CEO Mary Barra highlights strategic moves to align with consumer demand. Meanwhile, GMC is updating its trucks and SUVs with plug-in hybrids arriving in 2027 and EV redesigns planned.
  • Q2 revenue dropped 1.8% to $47.1 billion; North American pretax profit down 46%.
  • Tariffs expected to cut profits by $4-$5 billion this year.
  • GMC’s Sierra and Yukon will add plug-in hybrids in 2027, with EV Sierra redesign in 2028.
  • Hummer EV and other models due for updates through 2029.
  • Barra: “We’ll emerge from this transition stronger and more profitable than before.”
    
    
    
• California dealers are tackling the nationwide shortage of skilled auto techs with a new apprenticeship program. The initiative lets aspiring technicians learn on the job without upfront costs, offering wages, tools, and a U.S. Department of Labor certification after two years.
  • CNCDA reports 400,000 tech job openings nationwide; California alone needs 5,000 more.
  • The shift to EVs and retiring experienced techs are worsening the shortage.
  • Apprenticeship pays a fair wage, requires no tuition, and includes e-learning tools.
  • Open to anyone, especially those 18-30 without college degrees, aiming to avoid student debt.
  • “This program offers a practical path to a lucrative career without the burden of traditional schooling,” said CNCDA representatives.

• While companies rarely admit it publicly, AI technology is increasingly driving workforce reductions disguised as restructuring or optimization. Early layoffs have targeted 1099 freelancers, especially in content and creative roles, HR, and Customer Service as firms cautiously phase in AI tools before affecting full-time employees.
  • IBM and Klarna have been among the few transparent about AI replacing some jobs despite overall growth.
  • Companies often use euphemisms like “restructuring,” “reorganization,” “optimization,” and “business efficiency” to mask AI-driven job cuts and avoid backlash.
  • When AI falls short, companies often outsource work globally instead of rehiring domestically.
  • “AI might automate 70% to 90% of a process, but the last mile still needs the human touch, especiall

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Episode Transcript

Paul J Daly (00:00):
Good morning, Tuesday, July 22 this is the
automotive State of the Union.
I'm Paul Jay Daly. Just call himout here today. We're talking
about a eyes, layoff, deception,GM earnings and some new drive
trains, as well as fun story, arare positive story to come out
of Jalopnik.

Kyle Mountsier (00:18):
A rare positive Jalopnik story. Call them and
congratulate I

Paul J Daly (00:22):
should it feels like they've been hanging around
with some of our people. It'srubbing off. That's good. I
know, I know. I mean, look, wegot a quick shot show today, but
it's always good to just thinkabout the positive things. Think
about the positive. I mean, alot of people have to think
about the positive. GM is tryingto get us to think about the
positive as their q2 net incomefell 35% hit by a $1.1 billion

(00:46):
tariff bill. But the only thecompany holds firm on their full
year profit goals, CEO MaryBarra highlighting strategic
moves to align with consumerdemand. Meanwhile, GMC is
updating its trucks and SUVswith plug in hybrids arriving in
2027 we've been asking aboutthis forever. It's the first
information so basically cute torevenue dropped 1.8% to 47 point

(01:10):
1 billion. Tariffs expected tocut profits by four to 5 billion
this year, which is what theysaid last report. And they're
saying that's holding steady.
That's holding staying about thesame. And then the kind of the
second tail end of the story isthe fact that the GMC Sierra and
UConn are going to be adding,drum roll please. They've been
Toyota plug in hybrids in 2027with the EV Sierra. That the

(01:33):
full EV truck, which is kind oflike my favorite car right now,
they're gonna fully redesignthat in 2028 the Hummer and Ev
and other models are due forupdates too, but Mary Barra
said, we're going to emerge fromthis transition stronger and
more profitable than ever. Soleaning in on their agility and
their understanding of theirnumbers, I guess. Well,

Kyle Mountsier (01:52):
look, the hybrids and the plug in hybrids
are going to be profitable,profitable models because the
technology is it's a it's aslower walk for for all these
manufacturers and and, and even,man, I just, I wonder what could
have been if three years ago,everybody went down this path,
that this was the path, would weactually be closer to EV
adoption? Yeah, we have started.
Probably an easy yes, weprobably have. Would have walked

(02:15):
it a lot quicker.

Paul J Daly (02:19):
Yeah, just Toyota, they were saying this, right?
Yeah, everybody just got caughtup in the hype of the moment.
But, I mean, the thought ofhaving, like, a big Yukon and,
you know, like the Escaladesright along with it, any other
big truck, having one with thathas a good, good torque and good
power, and then has that. Can

Kyle Mountsier (02:35):
you imagine 100 mile range, seven, 800 mile
ranges,

Paul J Daly (02:39):
it's gonna happen.
Oh, and I think that's whatpeople want, especially, what
was the vehicle yesterday? We'resaying we go like, 140 miles on
plug. It only was it a Ford,

Kyle Mountsier (02:46):
yeah? It was a Yeah, Ford, Bronco. So

Paul J Daly (02:53):
this is going to be like, I love that. You can go
back years and hear us sayingit. I think a lot of rational
people were saying it thehybrid, the plug in hybrid. This
is the middle step to EVadoption, and now we're getting
there. I feel like this is goingto be one that sticks right. The
hype train is gone. I think thiswill be substantive. I can't
wait to drive one. I'll probablyend up owning one, because I

(03:15):
like the big trucks. Yeah. Imean, a plug in hybrid would be
pretty dope.

Kyle Mountsier (03:19):
And when you get in 35 miles to the gallon on the
truck. Why not go for it? Youknow, I've

Paul J Daly (03:24):
been in like, ridiculous territory for so
long, like it's just the landThere's there was nothing worse
than the Land Cruiser, by theway. I think it was 12 gallons a
mile. Oh my, that one. It waslike backwards. So bad.

Kyle Mountsier (03:38):
They missed it.
Paul, if they missed it, theymissed it. They missed it.
Speaking of not miss though, oh,let's go. Sorry.

Paul J Daly (03:47):
Our friends out in California, California dealers
are tackling the nationwideshortage of skilled auto techs
with a new apprenticeshipprogram. Initiative is letting
aspiring techs learn on the jobwithout any upfront costs, while
getting paid, while gettingtools and getting a US
Department of LaborCertification. So the program
had got the certification after,just to wait, what is I'm trying

(04:10):
to think, you don't get a techcertification after two years
from the US Department of Laborafter I have to check into the
story, who's getting a certifiedI don't know, but basically
California New Car DealerAssociation, our friends there,
Brian Maz, all our good friends,cncda, they're saying there are
400,000 tech job openingsnationwide. California alone

(04:31):
needs over 5000 right now, andthe shift to EVs retiree
experience techs are justworsening the shortage. So the
apprenticeship pays a fair wage,requires no tuition, and
includes all the E learningtools necessary open to anyone,
especially those 18 to 30 yearsold without college degrees,
aiming to avoid student debt. Imean, this is such a winning

(04:54):
situation. Cncda reps said,quote, This program offers a
practical path. Us to alucrative career without the
burden of traditional schooling.
Sign me up. Yeah, this is sortof great, huge for me. First of
all, like kudos to anyone tryingto solve the technician shortage
right now. I just think when youlook at

Kyle Mountsier (05:15):
the problem is the education of what being a
technician looks like now,right? The brand of it,
basically, and you got oilchanges and all this type of
stuff. But like, you're acomputer scientist at the same
time, like you were with hightech, especially when you look
at EVs, so there's, there's noreason why we shouldn't be
attracting a totally new groupof of of workers into this

(05:40):
workforce. I did just look itup. Yeah, it's a Department of
Labor Certification after twoyears. So some of this is for
like, like, immigrants andpeople that are seeking the
certification of the ability towork. So pretty

Paul J Daly (05:56):
cool. Yeah. What a path go California. What a path
I know. Yeah. Speaking of what apath

Kyle Mountsier (06:02):
segue, this is not surprising. This next one
autos making jobs and the restof the world's trying to destroy
it while, while companies rarelyadmit it publicly, AI technology
is slowly and increasinglydriving workforce reductions.
Early layoffs have targetedspecifically 1099, freelancers
and content and the creativeroles, even even getting into

(06:28):
full time employees. Now,obviously HR and customer
service firms are recommending alot of cautiousness when
bringing in AI tools. IBM andKlarna have been among the few
transparent about AI replacingsome jobs despite overall
growth. So they're actuallysaying this is very transparent.
Other companies are just likedoing the old normal, like,

(06:50):
we're just restructuring, oh,it's some optimization, even
though, when you look deeper,there's a lot of AI focus in
those companies. Taylor Goucher,VP of Sales and Marketing at
Connects global, said, AI mightautomate 70 to 90% of a process,
but the last mile still needsthe human touch, especially for
quality assurance judgment callsand edge cases, which we've been

(07:13):
talking a

Paul J Daly (07:13):
lot about, without a doubt, but I do think that
this is it's really a PR play,because it's not really great
publicly To be like, we'recutting jobs, replacing them
with robots, right? Like, nocompany wants to say that. So it
does make sense that they'rerestructuring. But when you look
at the profit and loss sheets,when you look that like the
companies are doing okay,they're just seeing the
opportunity to optimize. And oneof the other nuances to this

(07:35):
story is like, some companiesare cutting so far, right?
They're like, we're cutting 100%of this area of jobs, replacing
it with AI, and then theyrealize, well, they realize it
doesn't work that way, and itcan't work that way. However,
when they ramp back up, they'reactually outsourcing the ramp up
overseas. So it's like, because,like, the efficiency is winning.
So this is going to be more andmore of a topic. I think it's

(07:58):
totally unavoidable. When Ithink about our auto industry. I
think about the tech companies.
I think about all thedealerships out there, like just
being really smart aboutimplementing AI processes and
systems. Now, the companies inautomotive is growing. The
segment overall is growing. Sowe're not forced with the same
you know, maybe the largercompanies are forced with this
right to try to stay competitiveagainst the strong, more nimble

(08:19):
companies who, like you have atech company coming up now.
They're building something withlike six people that used to
need like 36 to build, and thelegacy companies still have 36
people like working on it. So Ithink larger companies in our
industry might be faced withthis first. However, like, you
know, we've seen strategieswhere, like, some companies are
just managing churn. Klarna isone of the ones that did that,

(08:40):
right? They said, Well, wehaven't fired anybody. We just
let natural attrition run itscourse. And we they cut, I think
they went down from like 5000people to 3000

Kyle Mountsier (08:49):
to 3000 Yep, yeah. I mean, you know, you
listen to Steve Greenfield atASOTU Con this year just talking
about how many roles are goingto be cut across even retail.
And a lot of people would say,well, retail is human to human.
To Human. There's still so manyroles that can cut them down. So
we'll see.

Paul J Daly (09:06):
We saw how much of this robot we saw, the Optimus
robot, serving popcorn, servingpopcorn. That's about all I can
do, fam. That's messed up. Onthat note, I think we've done
enough damage for today. We hopeyou gave you a little pep in
your step. But the bottom lineis, you're a human. You're
watching the show. You're human.
You do human things. So go outthere. Care about the other
humans. Now, guess what? Yourjob is going to be super safe.
You.