General Motors (GM) announced plans to scale back electric vehicle (EV) and battery production in the United States, affecting about 1,200 factory jobs at its Detroit EV assembly plant. The automaker said the decision comes amid a significant slowdown in consumer demand for battery-powered cars and an evolving regulatory landscape.
Starting in January, GM will halt battery cell production for approximately six months at its two U.S. joint-venture battery plants located in Tennessee and Ohio. The company will temporarily lay off about 1,550 workers at these facilities. At the Ohio battery plant, operated jointly with South Korea’s LG Energy Solution, 550 workers will face indefinite layoffs.
GM also confirmed that production at its Detroit EV plant will be reduced to a single shift beginning in January, cutting output by around 50 percent. The factory currently produces three large electric pickup trucks — the Chevrolet Silverado EV, GMC Sierra EV, and Cadillac Escalade IQ — along with the Hummer SUV.
A GM spokesperson said the company’s production cuts are “in response to slower near-term EV adoption and an evolving regulatory environment.” The slowdown follows changes in U.S. policy, including the expiration of the $7,500 federal tax credit for electric models at the end of September and relaxed vehicle-emission standards under the Trump administration, both of which have dampened EV demand, Reuters reports.
Earlier this month, General Motors disclosed a $1.6 billion charge tied to adjustments in its EV strategy, signaling a broader reassessment of its electric transition pace amid shifting market conditions.
In Q3-2025, General Motors (GM) reported strong electric vehicle (EV) sales performance in 2025, leading the U.S. industry in market share growth year-to-date with total EV sales of 67,000 units — representing 16.5 percent of the national EV market. GM also maintained the lowest EV incentives among major automakers.
Chevrolet became America’s second-largest EV brand, driven by strong sales of the Equinox EV, now the best-selling non-Tesla electric vehicle. Cadillac achieved the highest share gain in the luxury EV segment in 2025 and is currently the top-selling luxury EV brand in the U.S., with three models — LYRIQ, OPTIQ, and VISTIQ — ranking among the top ten luxury EVs. Meanwhile, GMC’s EV sales more than doubled year-to-date, underscoring GM’s momentum across multiple segments of the electric vehicle market.
Faheema P