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GM Cuts Back EV Production Amid Slowing Demand and Policy Changes
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2025-11-11
U.S. General Motors (GM) announced it is reducing production of some electric vehicles (EVs) and batteries due to softer-than-expected demand and recent changes in federal rules and tax incentives. The Chevy Bolt will begin production later this year in Kansas with one shift, with a second shift expected next year. GM’s Spring Hill, Tennessee plant will halt all production in December. The plant, which produces the Cadillac Lyriq and Vistiq EVs, will reopen next year with one shift until May 2026, then add a second shift. GM states these adjustments align with anticipated slower EV industry growth and customer demand. The company plans to invest nearly USD5 billion over the next 2 years to boost domestic vehicle manufacturing, aiming to assemble over two million vehicles annually in the U.S. This move reflects ongoing industry caution following the end of USD7,500 EV tax credits at the end of September, signed into law under President Trump, who has also sought to repeal EV-specific regulations. Barriers like charging station access, range anxiety, and high vehicle prices remain hurdles to wider EV adoption. Market researcher Sam Abuelsamid predicts other automakers will also slow EV output following the expiration of tax credits but anticipates a rebound in 2026 with more affordable models like Nissan Leaf. "Much could change in the next 15 months," he said.
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