General Motors (GM) is set to reduce production at one of its primary electric vehicle (EV) plants, reacting to diminished federal backing for EVs under the administration of the US President Donald Trump, reported Reuters.
The automaker will temporarily cease production of two electric Cadillac SUV models at its Spring Hill, Tennessee plant, US, in December, as informed by a source close to the matter and internal communications obtained by the news agency.
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The Spring Hill factory is responsible for producing the Cadillac Lyriq, a top-selling midsize EV, and the Vistiq, a larger EV model.
Additionally, the sources said that GM anticipates a considerable reduction in the production of these vehicles for the first five months of 2026, which will involve temporary layoffs for one of the two worker shifts.
Furthermore, the automaker will close the plants for a week each in October and November.
Plans are also in place to “indefinitely” postpone the initiation of a second shift at a plant near Kansas City, which is expected to start producing the Chevy Bolt EV later in 2025.
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By GlobalDataWhen approached for a statement, GM told the publication that the company is “making strategic production adjustments in alignment with expected slower EV industry growth and customer demand by leveraging our flexible ICE (internal combustion engine) and EV manufacturing footprint.”
The withdrawal of significant incentives for EVs, such as the $7,500 consumer tax credit and the freezing of penalties for not meeting federal fuel efficiency standards, as enacted by the Trump administration’s tax and spending law in July, has led to a recalibration of expectations within the industry.
According to the publication, car executives anticipate a challenging period for EV sales following the expiration of the subsidy by the end of this month.
Despite the bullish forecasts for EV sales from a few years prior, the reality has been less optimistic, with many companies still incurring losses on electric models.
Advocates for green vehicles argue that federal support is crucial to expand adoption and keep the US competitive with Europe and China.
GM reported its highest-ever EV sales in August, with 21,000 battery-powered vehicles sold across its brands.
However, in July 2025, GM also paused production at its pickup-truck plant in Silao, Mexico, for several weeks.
Despite these production adjustments, GM has experienced a 7% rise in US sales in the second quarter of 2025, contributing to a 12% increase in the first half of the year.
