GM Cuts 1,700 Jobs in Michigan and Ohio as Electric Vehicle Demand Slows

General Motors eliminated approximately 1,700 positions at two manufacturing hubs in Michigan and Ohio on Wednesday, citing weaker-than-expected momentum in the U.S. electric vehicle market and shifting regulatory conditions. The reductions affect hourly and temporary workers at an assembly plant in Detroit and at an Ultium Cells battery facility in Warren, Ohio, with additional temporary cuts planned at a battery site in Tennessee.

The company confirmed that around 1,200 employees were laid off at the Detroit facility that produces electric pickup trucks and SUVs, while 550 jobs were cut at the Ultium Cells plant in northeastern Ohio. In the same Ohio location, 850 temporary workers were released from duty. GM said another 700 positions at Ultium Cells’ plant in Tennessee would be placed on temporary layoff status in the coming months.

“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the automaker said in a statement. The company added that its long-term commitment to U.S. production remains unchanged and that the reconfiguration is intended to make operations more flexible and resilient.

Beyond the workforce adjustments, GM plans to suspend battery cell output at the Ohio and Tennessee Ultium Cells plants beginning in January. Both sites are scheduled to restart by mid-2026 after upgrades designed to improve manufacturing efficiency and incorporate next-generation technology. The pause will give engineers time to update equipment and revise production processes to meet future vehicle programs, according to the company.

The latest cuts arrive less than a week after GM disclosed a separate reduction of more than 200 salaried jobs, primarily engineers stationed at its global technical center in suburban Detroit. That downsizing is part of an ongoing restructuring designed to lower fixed costs and align staffing levels with near-term product plans.

Market conditions underpinning the decisions have shifted in recent months. A federal incentive of up to $7,500 for qualifying electric vehicle purchases expired at the end of September, prompting a surge in deliveries as consumers rushed to secure the credit. The benefit, detailed by the Internal Revenue Service, had helped offset higher upfront prices for battery-powered models. Without that discount, analysts expect demand growth to moderate until new incentives or lower vehicle costs emerge.

Even with the looming slowdown, the third quarter produced record sales for many manufacturers. GM reported that its electric vehicle deliveries more than doubled from the same period a year earlier, and similar year-over-year gains were logged by Ford Motor Co. and Hyundai Motor Co. Nonetheless, executives across the industry have signaled that production plans must be calibrated to near-term market realities while broader consumer adoption builds.

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For GM, the facilities involved in Wednesday’s announcement are central to its strategy of scaling battery cell capacity through Ultium Cells, a joint venture with LG Energy Solution. The Warren, Ohio, plant opened in 2022 as the first of three planned U.S. battery sites, with the second in Spring Hill, Tennessee, ramping up this year and a third under construction in Lansing, Michigan. The temporary pauses will postpone volume growth but are expected to support upgraded chemistries and manufacturing methods once production resumes.

Company officials did not identify specific vehicle programs that might be delayed as a result of the layoffs and production hiatus. Current EV offerings assembled at Detroit’s plant include the GMC Hummer EV pickup, GMC Hummer EV SUV and Chevrolet Silverado EV. Future models, such as the GMC Sierra EV, were slated to enter production in the coming years; GM has not announced revised timing.

While hourly employees affected by indefinite layoffs can seek openings at other GM locations under their labor agreements, temporary workers generally do not receive transfer rights. The automaker said it would coordinate with union representatives to explore placement opportunities where available.

The Detroit News first reported the layoffs earlier Wednesday. GM said it will continue to monitor market conditions and make additional adjustments as necessary to balance supply with expected demand.

Crédito da imagem: Gene J. Puskar | AP