GM Slows EV Production Ahead of Tax Credit Expiration
▼ Summary
– General Motors is scaling back production of the Cadillac Lyriq, Vistiq, and Chevy Bolt EV due to an expected slowdown in electric vehicle sales.
– The $7,500 consumer tax credit for new EV purchases, which has been crucial for demand, is set to expire at the end of the month.
– Production pauses and slowdowns are planned at plants in Tennessee and Kansas, including temporary layoffs and indefinite delays for shifts.
– Despite record EV sales in August, GM remains uncertain about the future market and has stated it will not overproduce.
– The reduction in EV production by the largest American automaker may hinder the US’s ability to catch up with other nations in clean energy investments.
General Motors is scaling back production of several key electric vehicle models, including the Cadillac Lyriq, Vistiq, and Chevy Bolt EV, as the automaker anticipates a significant drop in consumer demand. This strategic pullback comes just ahead of the expiration of the $7,500 federal tax credit for new EV purchases, a financial incentive that has played a vital role in making electric vehicles more accessible to buyers. Without this support, EVs often carry a higher price tag compared to traditional gasoline-powered cars, which could dampen sales momentum.
Production adjustments are already underway. The Spring Hill, Tennessee facility will see a temporary pause in manufacturing for the Lyriq and Vistiq models in December. Additional slowdowns are scheduled for November and October, with further reductions planned through the first five months of 2026. These cuts will involve laying off one entire shift of workers during that period. In a related move, GM has postponed indefinitely the launch of a second production shift at its Kansas City plant, where the new Chevy Bolt EV was slated to begin assembly later this year.
Despite these cutbacks, it’s worth noting that EV sales have shown gradual improvement over time. August marked a record month for the company’s electric vehicle sales, a milestone GM publicly celebrated. Still, executives struck a cautious tone in the same announcement. Duncan Aldred, Senior Vice President and President of North America, emphasized that the automaker expects “a smaller EV market for a while” and has no plans to overproduce in the face of uncertain demand.
The broader implications for the U.S. auto industry and its clean energy goals are hard to ignore. Earlier this year, transportation experts pointed out that the United States already lagged behind China and other developed nations in clean energy investment. With America’s largest automaker now aggressively trimming EV output, even amid periods of sales growth, the nation risks falling further behind in the global shift toward electric transportation, potentially on a permanent basis.
(Source: The Verge)
