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General Motors plans to cut back on the production of the Cadillac Lyriq, Vistiq, and the Chevy Bolt EV. This move comes in anticipation of a significant slowdown in the sales of electric vehicles (EVs). Contributing to this expected drop is the expiration of the $7,500 consumer tax credit for new EV purchases, set to end this month. This tax incentive has been a vital factor in boosting the demand for EVs, which remain costlier than traditional gas-powered vehicles.
The company will halt production of the Lyriq and Vistiq at its Spring Hill, Tennessee facility in December. There are also plans to stop production for a week in both November and October and reduce production in the first five months of 2026 by temporarily laying off a shift of workers. Additionally, GM is indefinitely postponing the start of a second shift at a plant near Kansas City, which was expected to begin manufacturing the Chevy Bolt EV later this year.
Although EV sales have not reached the projected numbers, they have shown improvement. GM even reported that August marked its highest-ever month for EV sales. Despite this, the company expressed uncertainty about future trends. Duncan Aldred, GM’s Senior Vice President and President in North America, stated, “We will likely face a smaller EV market for some time and are careful not to overproduce.”
In May, transportation editor Andrew J. Hawkins commented that “the US was already falling behind nations like China in clean energy investments and might lag even more now.” With America’s largest automaker significantly reducing EV production, despite strong sales, it becomes challenging to envision how the US can close this gap.
