Reduced federal backing leads to narrowed electric vehicle manufacturing by General Motors - according to a news report
The automotive industry is facing a challenging period, as reported by Reuters, with electric vehicle (EV) sales expected to be affected following the expiration of subsidies by the end of this month. This news comes as General Motors (GM) announces temporary production halts for two electric Cadillac SUV models at its Spring Hill factory in Tennessee.
The affected models are the popular midsize EV, the Cadillac Lyriq, and the larger EV model, Vistiq. The production halt is due to a shortage of semiconductor chips, according to a statement by GM.
This temporary production reduction will result in one of the two worker shifts at the Spring Hill factory being laid off. Additionally, GM plans to indefinitely postpone the initiation of a second shift at a plant near Kansas City, which was expected to start producing the Chevy Bolt EV later in 2025.
The production reductions come amidst a diminished federal backing for EVs under the administration of the US President Donald Trump. Advocates for green vehicles argue that federal support is crucial to expand adoption and keep the US competitive with Europe and China.
Despite these production adjustments, GM has seen a positive trend in its sales. The company experienced a 7% rise in US sales in the second quarter of 2025, contributing to a 12% increase in the first half of the year. In August, GM reported its highest-ever EV sales, with 21,000 battery-powered vehicles sold across its brands.
The Just Auto Excellence Awards celebrate innovation, leadership, and impact in the automotive industry. Despite the current challenges, companies like GM continue to strive for advancements in EV technology, positioning themselves among top leaders driving industry progress.
In July 2025, GM paused production at its pickup-truck plant in Silao, Mexico, for several weeks. The Spring Hill factory will also close for a week each in October and November.
As the automotive industry navigates through these challenging times, it remains to be seen how companies like GM will adapt and continue to innovate in the EV sector.
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