Automobile manufacturer General Motors halts production of the Cadillac Lyriq, Bolt, and BrightDrop amid decreased market demand.
In a recent announcement, General Motors (GM) has revealed plans to temporarily halt production at several of its North American facilities, including the Detroit-Hamtramck's Factory Zero, CAMI Assembly plant in Ontario, Canada, and Spring Hill Assembly plant in Tennessee. These moves are due to a potential slowdown in electric vehicle (EV) demand and the expiration of the federal $7,500 EV tax credit on September 30.
At Detroit-Hamtramck's Factory Zero, about 360 workers will be affected by temporary layoffs. The CAMI Assembly plant, which builds the BrightDrop electric delivery van, will also undergo downtime, affecting approximately 450 workers. The production halt at the Spring Hill Assembly plant will impact vehicle assembly and battery pack operations, but Ultium Cells employees will remain unaffected.
The downtime will allow retooling for the 2026 model year of BrightDrop commercial EVs at the CAMI Assembly plant. When operations resume, the plant will operate on a single shift. The Spring Hill Assembly plant, which builds the Cadillac Lyriq and the upcoming Vistiq SUV, will have multiple weeks of downtime, including weeks of October 6, Thanksgiving, and December. Starting in January 2026, the Spring Hill Assembly plant is expected to operate with only one shift, leading to approximately 700 layoffs.
The Fairfax Assembly plant in Kansas City, Kansas, had been preparing to start production of the Chevrolet Bolt EV, but this expansion is now on hold. The changes at the Fairfax Assembly plant are due to market conditions. When the plant resumes operations, it will produce the gasoline-powered Chevrolet Equinox by mid-2027.
The United Auto Workers (UAW) union is temporarily halting EV production at the Spring Hill Assembly in Tennessee, Fairfax Assembly in Kansas City, Kansas, and CAMI Assembly in Ontario, Canada, to prepare for manufacturing new models for the year-end 2023/2024 transition. Affected employees at the Spring Hill Assembly plant will be placed on temporary layoff status with eligibility for benefits under the UAW-GM contract.
Despite these temporary setbacks, GM recently reported record EV deliveries in August, with more than 21,000 units sold across its Cadillac, Chevrolet, and GMC brands. However, sales are expected to decline in the fourth quarter as the loss of incentives and broader economic pressures take effect.
This strategic repositioning by General Motors underscores the company's commitment to lead the EV revolution while navigating the complexities of the evolving market. As the industry continues to evolve, it is anticipated that GM will continue to innovate and adapt, ensuring its position as a key player in the future of transportation.
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