Wedoany.com Report-Oct. 30, General Motors (GM) announced on Wednesday that it will reduce electric vehicle (EV) and battery production in the United States and cut a total of 1,750 factory jobs due to a significant slowdown in demand for battery-powered cars. The decision affects 1,200 workers at GM’s Detroit EV plant and 550 workers at its battery plant in Ohio.

The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. Picture taken March 16, 2021.

The automaker said battery cell production will be suspended for about six months starting in January at its two U.S. joint-venture battery facilities in Tennessee and Ohio. Around 1,550 employees at these battery plants will be temporarily laid off during the shutdown period. At the Ohio plant, operated jointly by GM and South Korea’s LG Energy Solution, 550 workers will be laid off indefinitely.

Production at GM’s Detroit EV factory will also be reduced to one shift beginning in January, down from two shifts currently in operation, which will lower output by approximately 50%. The Detroit plant produces several large electric pickup trucks, including the Chevrolet Silverado, GMC Sierra, Cadillac Escalade IQ, and Hummer SUV.

GM stated the decision was “in response to slower near-term EV adoption and an evolving regulatory environment.” The company had previously urged Congress and the White House to adjust emissions rules and recently announced other production reductions.

U.S. automakers have been scaling back their EV strategies as consumer demand weakens following the phaseout of a $7,500 federal tax credit for EV buyers. Analysts have projected that EV sales, which represented over 10% of total U.S. car sales during the summer, could decline significantly in the coming months.

Several manufacturers, including Nissan, Stellantis, and other brands, have postponed or canceled upcoming EV models. Earlier this month, GM also decided to halt production of its BrightDrop electric van, citing limited growth in the commercial EV market.

Sam Fiorani, vice president at AutoForecast Solutions, commented: “We expect more EV job cuts across the U.S. auto industry and lower EV production than we’ve seen over the last few years, along with higher prices.”

The United Auto Workers (UAW) union criticized GM’s decision. UAW President Shawn Fain said: “The UAW will continue to fight for more investment in both internal combustion engine and EV production at GM and beyond.” He pointed out that GM recently raised its annual profit forecast to $13 billion despite the workforce reductions.

In addition to the manufacturing cuts, GM confirmed it has eliminated around 500 white-collar positions in the past week as part of broader restructuring efforts.

In 2021, GM announced plans to transition fully to EV sales by 2035 and significantly increased its investment in electric technology. However, the company has since adjusted its strategy. CEO Mary Barra said last week: “With an evolving regulatory framework and the end of federal consumer incentives, it’s clear that near-term EV adoption will be much lower than planned.” She added that GM expects to reduce EV-related financial losses beginning in 2026 and beyond.