"General Motors has taken its latest step to avoid financial disaster as its electric vehicle efforts have been widely derailed. GM's electric vehicle manufacturing efforts started off hot, and CEO Mary Barra seemed to have a real hold on how the industry and consumers were starting to evolve toward sustainable powertrains. Even former President Joe Biden commended her as being a major force in the global transition to EVs."
"However, the company's plans have not gone as they've drawn them up. GM has reported some underwhelming delivery figures in recent quarters, and with the loss of the $7,500 tax credit, the company is planning for what is likely a substantial setback in its entire EV division. Earlier this month, the company reported it would include a $1.6 billion charge in its quarterly earnings results from EV investments. It was the first true sign that things with GM's EV projects were going to slow down."
"There was an even larger step taken this morning, as the Detroit Free Press reported that GM was idling its Factory Zero plant in Michigan until late November, placing about 1,200 workers on indefinite layoff status. This is in addition to the 280 employees it has already laid off after production cuts that happened earlier this year at the Detroit-Hamtramck plant."
General Motors' electric vehicle program has slowed after an initial strong start and praise. The company has recorded underwhelming delivery figures and faces loss of the $7,500 tax credit, prompting expectations of a substantial setback for the EV division. GM will take a $1.6 billion charge related to EV investments in quarterly earnings. GM is idling the Factory Zero plant in Michigan until late November, placing about 1,200 workers on indefinite layoff and adding to earlier cuts of 280 employees. The company will bring back 3,200 workers from November 24 to January 5 to operate both shifts, after which about 1,200 are expected to remain indefinitely laid off. Ford has adopted a more cautious approach to EV commitments.
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