GM Takes a U-Turn: Cutting EV Production Amid Slowing Demand

In a significant move, General Motors announced on Wednesday that it will reduce electric vehicle and battery production in the United States, affecting 1,200 factory jobs at its EV plant in Detroit. This decision comes as the automaker grapples with dwindling demand for battery-operated vehicles.

The Detroit-based company will also pause battery cell production at its Tennessee and Ohio joint-venture battery plants for six months starting in January. This temporary halt will impact about 1,550 workers across these facilities, with 550 workers at the Ohio plant facing indefinite layoffs.

These measures reflect GM's response to slower-than-anticipated near-term electric vehicle adoption and a changing regulatory landscape. The automaker had pushed for eased emissions requirements and has faced challenges following the expiration of federal tax credits for EV buyers. Despite previous commitments to shift entirely to electric vehicles by 2035, GM is retrenching its strategies amid evolving market and regulatory conditions.