General Motors (GM) has announced plans to reduce production of its Cadillac Lyriq, Vistiq, and Chevy Bolt EV, anticipating a significant decline in electric vehicle (EV) sales. This decision coincides with the impending expiration of the $7,500 consumer tax credit for new EV purchases at the end of the month, a financial incentive that has been pivotal in stimulating demand, as EVs generally remain costlier than traditional gasoline-powered vehicles.
Production pauses for the Lyriq and Vistiq are scheduled at GM’s Spring Hill, Tennessee facility in December. Additionally, the company intends to temporarily halt manufacturing for a week in November and October, and to slow down production during the first five months of 2026, which may involve the temporary layoff of one shift of workers. Furthermore, GM is indefinitely postponing the initiation of a second production shift at a plant near Kansas City, which was set to begin manufacturing the Chevy Bolt EV later this year.
While EV sales have historically faced challenges in meeting market expectations, there have been signs of improvement; GM reported that August marked its highest-ever month for EV sales. However, the company also expressed uncertainty about the future landscape of the EV market. Duncan Aldred, GM’s Senior Vice President and President for North America, stated that a reduced EV market is anticipated in the near term, emphasizing a strategy of careful production levels to avoid overproduction.
This situation raises questions about the future of the U.S. EV market, particularly in light of comparisons to other nations, such as China, which are perceived to be advancing more rapidly in clean energy investment. The decision by the largest American automaker to cut back on EV production highlights the complexities and challenges facing the industry.
Source: https://www.theverge.com/news/773492/gm-cuts-ev-production-tax-credit