General Motors announced on Wednesday that it will reduce electric vehicle (EV) and battery production in the U.S. while cutting 1,200 jobs at its Detroit EV plant and 550 positions at an Ohio battery facility in response to slowing demand for battery-powered vehicles.
The company stated that it will halt production for approximately six months starting January next year at two U.S. joint-venture battery plants in Tennessee and Ohio. Additionally, around 1,550 workers at these facilities will be temporarily laid off.
Furthermore, at the Ohio plant, General Motors will indefinitely dismiss 550 employees. The facility is jointly operated with South Korea’s LG Energy Solution.
Starting January, General Motors will reduce production at its Detroit EV plant to a single shift, down from the current two shifts following prior workforce reductions. This move is expected to slash the plant’s output by roughly 50%. The facility manufactures three large electric pickup models, including the Chevrolet Silverado and GMC Sierra, as well as the electric Escalade IQ and Hummer SUV.
General Motors attributed the decision to "adjust to slower-than-expected EV adoption and evolving regulatory conditions." The automaker has been lobbying Congress and the White House to relax emissions requirements and last month already scaled back EV production targets.