(Yicai Global) Feb. 23 -- SAIC-GM has dismissed a rumor that the joint venture of Chinese carmaker SAIC Motors and General Motors of the US is planning to lay off staff because of shrinking sales.

The online rumor is untrue and has seriously damaged SAIC-GM’s reputation, the Shanghai-based automaker said in a press release put out late yesterday.

According to the rumor circulating on social media, SAIC-GM plans this week to let go staff aged 45 and over because of falling sales.

At the peak, the JV sold 2 million vehicles in 2017, but sales have fallen since then. It produced and sold nearly 1.2 million last year, down 12 percent from 2021. Last month, sales halved to 55,000, the steepest year-on-year monthly drop since 2020.

Founded in 1997, SAIC-GM sells vehicles under such brand names as Buick, Chevrolet, and Cadillac. SAIC and GM each hold a 50 percent stake in the JV.

SAIC-GM is accelerating the shift into new energy and smart vehicles. After GM launched electric vehicle platform Ultium in 2021, SAIC released its electric vehicle strategy, which includes the release of four new energy vehicle models based on Ultium by 2023.

Editor: Futura Costaglione