General Motors suddenly cuts EV production, starting with the Chevy Bolt
Uh oh, more electric vehicles are crumbling under the pressure of new tariffs as the federal tax credit comes to an end. It seemed like things were going well for General Motors‘ EVs with increasing sales. But the automaker just cut production of the brand-new Chevy Bolt EV.
General Motors cuts EV production, starting with the Chevy Bolt
You may have noticed that General Motors has had increased electric vehicle sales over the past few months. This made me think that EVs could be more popular than people expected.
In August, General Motors sold over 21,000 electric vehicles, while Ford sold 10,671 models. But unfortunately, these sales aren’t enough to stop the looming EV bust.
When the $7,500 federal EV tax credit ends on September 30, 2025, EV demand is expected to significantly drop. Plus, legislation froze penalties that automakers faced if their vehicles fall short of federal standards for fuel efficiency.
According to Reuters, this is likely to entice automakers to build more gas-powered cars as electric options bite the dust.
As a result, General Motors is significantly reducing production of its most popular electric trucks and SUVs during the first five months of 2026.
It’s planning to indefinitely delay the start of a second shift at a Chevrolet assembly plant near Kansas City. However, it’s still slated to start production of the brand new Chevy Bolt EV later this year.
GM will also stop production of two electric Cadillac SUVs, the Lyriq and Vistig. Both are some of the more popular electric SUVs.
The automaker will temporarily lay off one of its two shifts of workers and shutter the plants for one week in October and November as demand weakens.