by General Motors’ Electric Vehicle Production Plans
General Motors plans to suspend production of two electric models, the Cadillac Lyriq and Vistiq, starting in December 2025. The Tennessee plant will transition to a single shift, leading to temporary staff reductions due to slowed production output. Additionally, Chevrolet is delaying the launch of a second shift for the production of the next-generation Bolt at its Kansas City plant.
Impact of Changes in US Auto Policy
American automotive policy is undergoing changes again, which is already affecting production schedules. General Motors is becoming one of the first major manufacturers to react to these changes. The decision to suspend production of two electric models in December and reduce output volumes until 2026 will lead to temporary layoffs.
This decision follows changes in the Trump administration’s policy, which repealed federal tax incentives for electric vehicles and eliminated penalties for automakers who fail to meet fuel efficiency standards. With fewer incentives, manufacturers have more reasons to focus on internal combustion engine vehicles.
Details of Production Changes
According to a Reuters report, GM’s production cuts will begin in October and November when the Spring Hill, Tennessee plant, responsible for producing the Cadillac Lyriq and Vistiq, will be closed. In December, the assembly of these two models will also be suspended.
Production at this same plant will be significantly reduced during the first five months of 2026. This will force the company to temporarily lay off workers employed on one of the two shifts.
Consequences for Other Production Sites
Not only the Tennessee plant will be affected. GM has also decided to indefinitely postpone the launch of a second shift at its plant near Kansas City. This site was to produce the new generation Chevrolet Bolt, with production scheduled to begin this year. Although this step should not affect the launch of the new Bolt, it means that General Motors will not increase production as initially planned.
Sales Dynamics and Caution
GM’s electric lineup is gaining momentum, and August was its most successful month for electric vehicle sales to date – 21,000 units. However, a significant portion of this growth is linked to the final days of the $7,500 federal tax credit, which ended at the month’s close. Without this incentive, demand for electric vehicles is likely to weaken.
The company acknowledged that the changes are less about immediate demand for electric vehicles and more about preparing for slower overall industry growth. In a statement to Reuters, GM stated that it is “making strategic production adjustments in line with the anticipated slower growth of the electric vehicle industry and customer demand, utilizing our flexible manufacturing capacity for both ICE vehicles and EVs.”
Nevertheless, executives emphasize that the automaker is not abandoning electrification entirely and is simply demonstrating confidence. According to GM’s North America chief, Duncan Aldred, “the strength of our ICE vehicle portfolio will continue to differentiate our brands from others and give us the flexibility and profitability that purely electric vehicle companies lack.”
These changes in GM’s strategy are occurring against a backdrop of global trends where many automakers are reassessing their electric vehicle plans due to economic uncertainty, regulatory changes, and fluctuating demand. While long-term electrification goals remain, short-term adjustments have become necessary to maintain financial stability and adapt to market conditions. This could also affect component supply, infrastructure investments, and competitiveness in the electric vehicle sector in the coming years.
