General Motors (GM.US) announced it will adjust production plans for the Chevrolet Bolt electric vehicle due to demand uncertainty. The company will shift from the originally planned "dual-shift" production at its Kansas facility to a "single-shift" operation when manufacturing begins in December for this plug-in compact electric vehicle.

General Motors is preparing for a significant policy change: the $7,500 tax credit for electric vehicle buyers introduced during the Biden administration has been terminated by Donald Trump and the Republican-controlled Congress, with the incentive set to expire ahead of schedule. The elimination of tax incentives could weaken electric vehicle sales, prompting General Motors to reduce production of the Bolt and two Cadillac electric vehicles until it can assess the actual impact of the policy changes.

In a statement, General Motors said: "Given the slower-than-expected growth in the EV industry and changing customer demand, General Motors is making strategic production adjustments." The statement also noted that the company will temporarily shut down portions of its Spring Hill Assembly Plant in Tennessee. This facility currently produces the Cadillac Lyriq and Vistiq electric vehicles, as well as gasoline-powered SUVs under the Cadillac brand.

Trump's proposed $3.4 trillion fiscal plan, in addition to eliminating electric vehicle purchase incentives, also abolishes the requirement for automakers to pay penalties for failing to meet federal fuel economy standards. This change further reduces automakers' incentive to promote electric vehicles, as companies previously could earn "compliance credits" through EV sales to offset emission compliance pressures from gasoline vehicles.

Notably, while scaling back electric vehicle production, General Motors announced in June plans to expand capacity at a factory in Detroit's suburbs by 2027, focusing on increased production of large pickup trucks and SUVs.