There’s no doubt the market for EVs is cooling and GM has noticed, pulling back production of electric cars. If you’re having a case of déjà vu, it’s not you – GM already announced back in July it’s shifting the Orion Township assembly plant from EVs as previously planned to gas-powered trucks and SUVs.
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This time around, the auto giant says it’s taking a few more measures to pull back from the electric car market as demand cools. We’ve been seeing similar things from other automakers, so this is hardly just a GM strategy.
For starters, Chevy Bolt production begins again in late 2025 in Kansas. However, the factory will only have one shift, so it’s not going to be pumping out a ton of cars.
A GM spokesman says the automaker is anticipating adding a second shift sometime in 2026, so the company obviously thinks demand will improve for some reason.
In addition, for the entire month of December and the week of October 10 plus the week of Thanksgiving, GM plans to halt all production at its Spring Hill, Tennessee plant. That’s the home of the Cadillac Lyriq and Vistiq, plus the Cadillac XT5.
For 2026, the Spring Hill plant will come back online, but with only a single shift all the way until May 2026. The current second shift will be added back, showing that GM predicts demand will be soft until around then.
There are a few reasons why the EV market is softening. It was already in decline last year, but with President Trump coming into office and ending the electric car mandates, that has made many car shoppers reconsider their options.
Automakers are no longer getting millions or more from taxpayers just for making electric vehicles, something that was a popular gift during the Biden Administration through the Department of Energy.
And the federal EV tax credits are going away at the end of the month. That has caused a run on electric cars, but it means moving into October and beyond demand should crater.
Source: The Detroit News
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