GM Cuts EV Production in Tennessee,Kansas Citing Demand, Tax Credit Loss

General Motors is scaling back production of its electric vehicles in response to the Trump administration's removal of a $7,500 consumer tax credit, which has been a significant driver of EV demand. The company will halt December production of its popular Cadillac electric SUVs, the Lyriq and Vistiq, at its Spring Hill, Tennessee plant and plans further production cuts and temporary layoffs through the first five months of the following year. Additionally, GM is indefinitely delaying the start of a second shift at its Kansas City plant, where the Chevy Bolt EV was slated to be produced. CEO Mary Barra acknowledged that the loss of federal incentives is expected to slow EV sales, leading GM to make strategic adjustments to its manufacturing footprint to align with slower anticipated growth. These production changes reflect broader uncertainty in the EV market following policy shifts under President Trump. GM emphasized the use of its flexible manufacturing capabilities to adapt to changing customer demand and industry conditions.