General Motors is cutting output at one of its main electric vehicle (EV) factories, the latest carmaker to pull back on EVs as US President Donald Trump's administration yanks federal support for green cars.
GM will stop production of two electric Cadillac SUVs at its assembly plant in Spring Hill, Tennessee, in December, according to a person familiar with the matter and communications to GM employees viewed by Reuters.
The plant produces the midsize Cadillac Lyriq — a relative hit and one of GM's top-selling EVs — and the Vistiq, a larger electric SUV. GM also plans to curtail production of those vehicles during the first five months of next year by temporarily laying off one of its two shifts of workers, according to the sources.
The carmaker is also planning to indefinitely delay the start of a second shift at an assembly plant near Kansas City, which is still slated to begin production of the Chevy Bolt EV later this year, the person familiar with the matter said.
Asked for comment, the company told Reuters: “General Motors is making strategic production adjustments in alignment with expected slower EV industry growth and customer demand by leveraging our flexible ICE and EV manufacturing footprint.”
The Trump administration's tax and spending law passed in July withdrew key support for EVs, including a $7,500 (R133,541) consumer tax credit that had been in place for about 15 years. Car executives have said they expect a rough patch for EV sales after that subsidy expires on September 30.
“The $7,500 tax credit is driving demand; without that, that'll slow,” GM CEO Mary Barra said at an event in December 2024.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.