GM slows EV production as tax credit nears expiration

"General Motors is going to be scaling back production of the Cadillac Lyriq and Vistiq, as well as the Chevy Bolt EV as it expects sales of electric vehicles to slow dramatically. The $7,500 consumer tax credit for purchasing a new EV is set to expire at the end of the month. That credit has been crucial to driving demand for EVs, which are still more expensive than their gas-powered counterparts."

"The company is pausing production on the Lyriq and Vistiq at its Spring Hill, Tennessee plant in December. It's also planning to halt manufacturing for a week in November and October, as well as slow production during the first five months of 2026 by temporarily laying off one of its shifts of workers. Similarly, it's indefinitely delaying the start of a second shift at a plant near Kansas City, which is supposed to begin producing the Chevy Bolt EV later this year."

"While EV sales have struggled to meet expectations, they have improved over time. GM even announced that August was its best month on record for EV sales. But in the same press release it was quick to note that it was unsure what the future would hold. "We will almost certainly see a smaller EV market for a while, and we won't overproduce," the company's Senior Vice President and President, North America, Duncan Aldred, wrote."

General Motors will scale back production of Cadillac Lyriq, Vistiq, and the Chevy Bolt EV in response to an anticipated dramatic slowdown in electric vehicle sales. Production pauses will occur at the Spring Hill, Tennessee plant in December, with additional one-week halts in October and November and reduced output through early 2026 via a temporary shift layoff. A planned second shift near Kansas City for the Bolt EV has been indefinitely delayed. The $7,500 consumer EV tax credit is expiring at month end, and despite a record August for EV sales, GM expects a smaller market ahead.

Read at The Verge