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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

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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