GM cuts 5,500 jobs temporarily as US govt policies pressure EVs

General Motors notified about 5,500 employees across three plants that they are being laid off at least temporarily as the carmaker reassesses electric vehicle production in the wake of President Donald Trump's move to eliminate crucial tax credits.

The total includes 3,400 workers that were furloughed over the summer at its Factory Zero plant in Detroit, where the electric Chevrolet Silverado, GMC Sierra and Hummer EVs are made. The company said Wednesday it will assess how much production it needs and bring back about 1,200 of those employees in January when the plant returns to work on one shift. The remaining 2,200 will be furloughed indefinitely.

In a related move, GM laid off 1,400 Ultium battery plant workers in Warren, Ohio, and 710 in Spring Hill, Tennessee. Company spokesman Kevin Kelly said 850 may come back to work in Ohio in May and 550 of the layoffs are considered indefinite. The Tennessee layoffs are temporary, he said.


The cuts reflect a broader retrenchment by GM, which has moved to cut EVproduction amid a sharp slowdown in the market. EV sales growth had been slowing even before the Trump administration ended consumer tax credits of up to $7,500 per vehicle in September.

GM had been lobbying to keep the credits in place and have been trying to make their EVs cheaper to prop up demand. GM took a $1.6 billion charge in the third quarter related to its EV investments and warned there would be more in the fourth quarter.