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The Markets
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The Markets
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Manufacturing & engineering

GM to halt production at EV factory, blames weak demand

General Motors Company (NYSE:GM) is planning to stop production of two electric Cadillac SUVs at its assembly plant in Spring Hill, Tennessee, during the month of December, Reuters reported on Thursday.

The move is likely motivated by the Trump administration’s decision to withdraw federal support for electric vehicles.

The plant produces the midsize Cadillac Lyriq and the Vistiq, one of GM's top-selling EVs.

The media outlet also noted that GM plans to significantly reduce production of those vehicles during the first five months of next year by temporarily laying off one of its two shifts of workers, citing its sources. GM will also close the plants for one week in October and November.

As well, the automaker is expected to indefinitely delay the start of a second shift at an assembly plant near Kansas City, which still plans to begin production of the Chevy Bolt EV later this year.

In July, the Trump administration’s tax and spending bill passed into law, which included ending a $7,500 consumer tax credit that had been established for the past 15 years.

"The $7,500 tax credit is driving demand; without that, that'll slow," GM CEO Mary Barra said at an event in December 2024.

GM previously stated that August 2025 was its best month ever for EVs, with 21,000 battery-powered vehicles sold across its brands.

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