GM slows EV production as tax credit nears expiration
General Motors will reduce the production of Cadillac Lyriq and Vistiq, as well as the Chevy Bolt EV, as it expects sales of electric vehicles to slow down considerably. The consumer tax credit of $ 7,500 for the purchase of a new EV should expire at the end of the month. This credit was crucial to stimulate the demand for electric vehicles, which are even more expensive than their gas counterparts.
The company stops production on the Lyriq and Vistiq in its Spring Hill factory, Tennessee in December. He also plans to stop manufacturing for a week in November and October, as well as a slow production during the first five months of 2026 temporarily dismissing one of his workers’ changes. Likewise, he indefinitely delays the start of a second quarter of work in a factory near Kansas City, which should start producing the Chevy Bolt EV later this year.
While EV sales were struggling to meet expectations, they have improved over time. GM even announced that August was his best month ever recorded for sales of electric vehicles. But in the same press release, he quickly noted that he was not sure of what the future would hold. “We will almost certainly see a smaller EV market for a while, and we will not produce,” wrote the vice-president and president of the company, North America, Duncan Alloud.
In May, the editor-in-chief of transport, Andrew J. Hawkins, said: “The United States was already terribly behind China and other developed countries in terms of clean energy investments. And now it is likely to be more late, perhaps permanently. ” When the largest American car manufacturer aggressively reduces the production of electric vehicles, even as a sales overvoltage, it is difficult to see how the United States can catch up.
