Detroit, September 4, 2025 — General Motors has initiated a significant scale-back in electric vehicle output amid declining demand and the upcoming expiration of a pivotal federal tax credit. The company will halt December production of two electric Cadillac SUVs—the Lyriq and Vistiq—at its Spring Hill, Tennessee, factory, and delay the expansion of EV assembly at a Kansas City-area plant.
The Spring Hill plant, responsible for nearly half of GM’s EV production, will see a temporary suspension in December, followed by reduced volumes through mid‑2026 as the company lays off one of two shifts. Additionally, GM plans to close the plant for a full week in October and November. Meanwhile, the planned second shift for the Kansas City facility—tasked with manufacturing the Chevy Bolt EV—has been postponed indefinitely.
These cuts come in the wake of the Trump administration’s July rollback of the longstanding US$7,500 EV tax rebate, set to expire on September 30. The credit had been a primary driver of EV adoption; without it, automakers—including GM—are bracing for a slowdown.
GM characterized the adjustments as strategic, stating:
“General Motors is making strategic production adjustments in alignment with expected slower EV industry growth and customer demand by leveraging our flexible ICE and EV manufacturing footprint.”
Despite showcasing one of its strongest months ever for EV sales—21,000 units sold in August—GM acknowledges that changing market dynamics render continued momentum uncertain without targeted incentives.
