General Motors is dialling back its electric vehicle push, cutting production and delaying work at two major factories as demand cools and federal support for EVs fades.
The company will halt production of two Cadillac electric SUVs at its Spring Hill, Tennessee, plant for the entire month of December, according to internal communications and a person familiar with the plans. The factory builds the midsize Cadillac Lyriq one of GM’s top-selling EVs along with the larger Cadillac Vistiq.
Production cuts won’t stop there. GM plans to run only one shift at Spring Hill during the first five months of 2025, temporarily laying off hundreds of workers. The plant will also close for one week each in October and November.
Separately, GM will indefinitely delay adding a second shift at its assembly plant near Kansas City. That facility is still expected to begin building the new Chevy Bolt later this year, but with fewer workers than planned.
In a statement to Reuters, GM said it is making “strategic production adjustments in alignment with expected slower EV industry growth and customer demand” by leaning on its mix of electric and gasoline-powered vehicles.
The move comes after President Donald Trump’s administration pulled back key incentives for green cars. A law passed in July ended the $7,500 consumer tax credit that had supported EV buyers for nearly 15 years. That subsidy officially expired on September 30, and automakers say they expect a sharp drop in sales as a result.
“The $7,500 tax credit is driving demand; without that, that’ll slow,” GM CEO Mary Barra warned at an event last December.
The law also froze penalties automakers previously paid for missing federal fuel efficiency standards, a change analysts say could push companies to stick with gas-powered cars over electrics.
EV sales across the U.S. have fallen short of earlier predictions, and most automakers are still losing money on them. Advocates argue that without government support, the U.S. risks falling even further behind China and Europe, where EV adoption is stronger.
GM has had recent success with electrics after years of manufacturing setbacks. The company sold 21,000 EVs in August, its best month ever. Still, executives emphasize the company’s traditional lineup as a financial safety net.
“As we adjust to the new EV market realities, the strength of our ICE portfolio will continue to separate our brands from the pack and give us flexibility and profitability that EV-only companies lack,” GM’s North America chief Duncan Aldred wrote earlier this week.
