General Motors disclosed plans to lay off approximately 1,700 workers across manufacturing facilities in Michigan and Ohio, attributing the cuts to a decline in demand for electric vehicles. The reductions affected Detroit’s electric vehicle plant and Ohio’s Ultium Cells battery cell facility, with additional temporary layoffs at the Tennessee plant.
The automaker reported 1,200 job losses at the Detroit site, 550 at Ohio’s Ultium Cells plant, and 850 temporary layoffs at the same location. An additional 700 workers at Ultium Cells’ Tennessee facility were also placed on temporary furlough. GM stated the changes stemmed from slower near-term EV adoption and shifting regulatory conditions, prompting a realignment of EV production capacity.
The company emphasized its continued commitment to U.S. manufacturing, stating that facility upgrades during the pause would enhance resilience. Battery cell production at Ohio and Tennessee sites will halt starting January, with plans to resume by mid-2026.
Reuters noted that declining EV demand coincided with the expiration of a federal tax incentive under the Trump administration, which ended September 30. J.D. Power projected a 60% drop in EV sales for October, citing reduced consumer interest following the loss of a $7,500 tax credit and relaxed emissions regulations.
GM recently recorded a $1.6 billion charge tied to its EV strategy adjustments. Its stock fell 0.3% to $69.65 during midday trading on Wednesday, though shares have risen over 35% this year.
