Despite back-to-back record sales months, GM said on Thursday that it’s now planning to build fewer electric vehicles, including the new Chevy Bolt EV that’s not even out yet. GM’s sudden shift comes as it prepares for what it calls “irrational” EV discounts to expire at the end of September.
GM cuts EV production as drastic discounts expire
GM sold over 21,000 electric vehicles in August, the most it has ever sold in a single month. Although that’s nearly double the 10,671 crosstown rival Ford sold last month, it apparently isn’t enough.
In a memo sent to employees, GM announced plans to reduce output at its Spring Hill, Tennessee, plant. A source close to the matter confirmed the news to Reuters, claiming GM will halt production of two Cadillac EVs, starting in December.
The Cadillac Lyriq and larger Vistiq, both of which are built at the facility, will see significantly less output during the first five months of 2026.
According to the source, GM plans to suspend one of its two shifts at the facility, resulting in layoffs for workers on the second shift.
In what could be even bigger news, the source said GM is delaying the start of a second shift at its Fairfax assembly plant outside of Kansas City “indefinitely,” where the new Chevy Bolt EV is scheduled to enter production later this year.
GM said it was “making strategic production adjustments in alignment with expected slower EV industry growth and customer demand.”
After reporting August sales numbers, the company said it expects to see strong EV demand in September, but after the $7,500 federal tax credit expires at the end of the month, it expects a slowdown in the fourth quarter.
“We are seeing marginal competitors dramatically scale back their products and plans, which should end much of the overproduction and irrational discounts,” GM said. Although it anticipates a smaller EV market, GM still believes it can grow its market share.
The news comes after GM announced last week that it plans to slow production of the GMC Hummer EV and Cadillac Escalade IQ at its Factory Zero plant in Detroit.
Electrek’s Take
Through the first eight months of the year, GM remains the second-best-selling EV maker, behind Tesla. The Chevy Equinox EV, or “America’s most affordable 315+ range EV,” is expected to be the third most popular EV in the US in 2025, trailing only the Tesla Model Y and Model 3.
Later this year, we should get our first look at the new Chevy Bolt EV, which could be an even bigger hit. GM now offers an EV in nearly all segments, including entry-level, pickups, SUVs, and luxury.
Cadillac claims to be the leading luxury EV brand in the US, but that doesn’t include Tesla. With plans to slow output, it could open the door for other brands, like Hyundai, Kia, Volvo, and others, to gain ground.
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