Car manufacturer General Motors suspends production of the Cadillac Lyriq, Chevrolet Bolt, and BrightDrop vehicles due to decreasing market demand.
In a move to brace for a potential slowdown in electric vehicle (EV) demand, General Motors (GM) has announced changes in its production plans across several facilities in North America.
Starting from January 2026, the Spring Hill Assembly plant in Tennessee will operate with only one shift, leading to approximately 700 layoffs. Affected employees will be placed on temporary layoff status with eligibility for benefits under the UAW-GM contract. The production of the Cadillac Lyriq and the upcoming Vistiq SUV will be affected during this period. However, it's worth noting that Ultium Cells employees at the Spring Hill Assembly plant will not be affected by the downtime.
The Spring Hill Assembly plant will have multiple weeks of downtime, including weeks of October 6, Thanksgiving, and December. Production of the gasoline-powered Chevrolet Equinox is expected to resume at the plant by mid-2027.
Temporary layoffs have also impacted about 360 workers at Detroit-Hamtramck's Factory Zero, where GM builds the GMC Hummer EV and the Cadillac Escalade IQ.
Before the temporary layoffs announced earlier this year, the CAMI Assembly plant in Ontario, Canada, which builds the BrightDrop electric delivery van, was running two shifts. When operations resume at the CAMI plant, it will operate on a single shift, affecting roughly 450 workers. The plant, which was preparing to start production of the Chevrolet Bolt EV with one shift, has put that expansion on hold. The CAMI Assembly plant will remain idle until at least November 17.
The Fairfax Assembly plant in Kansas City, Kansas, is undergoing changes and will not start production of the Chevrolet Bolt EV as initially planned. The downtime at the CAMI Assembly plant will allow for retooling for the 2026 model year of BrightDrop commercial EVs.
Despite these changes, GM recently reported record EV deliveries in August, with more than 21,000 units sold across its Cadillac, Chevrolet, and GMC brands. The federal $7,500 EV tax credit, which expires on September 30, is believed to have caused sales to be pulled forward into the summer months.
As the automotive industry continues to evolve, it's clear that adaptability and flexibility are key. GM's decisions reflect a strategic approach to maintaining a competitive edge in the rapidly changing EV market.
