GM Plans U.S. EV Production Cuts Amid Federal Tax Credit Expiration

General Motors is scaling back production of its electric vehicles, including the Cadillac Lyriq, Vistiq, and the yet-to-be-released Chevy Bolt EV, in anticipation of a significant slowdown in demand following the expiration of the $7,500 federal tax credit at the end of September. Despite record EV sales in August, GM expects the market to contract and is pausing or reducing shifts at its Spring Hill, Tennessee, and Fairfax, Kansas City plants, resulting in layoffs and delayed production starts. The company attributes these production adjustments to expected slower EV industry growth and customer demand, aligning with a broader trend of competitors cutting back amid the end of aggressive EV discounts. GM continues to hold a positive outlook on growing its EV market share but is cautious about overproducing as the federal incentives, initially introduced under the Biden administration, are being cut under President Trump's fiscal policies. This retrenchment raises concerns about the U.S. falling behind China and other nations in clean energy investments and EV adoption. Meanwhile, GM plans to increase production of gasoline-powered pickups and SUVs in 2027, reflecting a strategic pivot amid uncertain EV market conditions.