GM to Cut 1,750 Jobs, Slow EV Production Amid Tax Credit Expiry

General Motors announced plans to cut 1,750 jobs and a slow electric vehicle (EV) and battery production in the United States as demand for EVs declines following the expiration of the US$7,500 federal tax credit. The company will eliminate 1,200 positions at its Detroit EV assembly plant and 550 roles at its Ohio battery facility, while temporarily halting battery cell production for six months starting in January at its joint ventures in Tennessee and Ohio.

GM said its Detroit EV plant will operate on a single shift beginning in January, down from two, reducing output by roughly 50%. The facility produces large electric trucks, including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and Hummer SUV.

“These adjustments respond to slower near-term EV adoption and an evolving regulatory environment,” the company said. GM has been lobbying Congress and the White House to ease emissions requirements and scaled back EV production last month.

At the Ohio battery plant, operated jointly with South Korea’s LG Energy Solution, 550 employees face indefinite layoffs, and about 1,550 others will be temporarily furloughed.

Industry data indicate automakers are revising EV strategies after reduced demand post-tax credit. EVs accounted for more than 10% of total US vehicle sales during the summer, but analysts expect that share to fall sharply in coming months.

Sam Fiorani, vice president,  AutoForecast Solutions, said, “We expect further EV job cuts across the US auto industry, with lower production and higher prices than in recent years.”

Shawn Fain, president, United Auto Workers, criticized GM’s move, noting the company recently raised its annual profit forecast to US$13 billion. “The UAW will continue fighting for more investment in both internal combustion and EV production at GM and beyond,” he said.

GM confirmed it also cut 500 administrative jobs last week as part of ongoing restructuring. CEO Mary Barra said, “With an evolving regulatory framework and the end of federal incentives for consumers, near-term EV adoption will be much lower than planned.” She added that GM expects to reduce EV losses beginning in 2026. The company also recorded a US$1.6 billion charge earlier this month related to its EV strategy shift.

GM shares closed down 1% at US$69.19 on Oct. 29, though the stock remains up more than 35% year-to-date.