Electric Vehicles
General Motors Cuts Over 1,700 Jobs as EV Demand Slows
General Motors (GM) has announced major layoffs as it adjusts production to meet cooling demand for electric vehicles. The company plans to cut roughly 3,400 hourly jobs across Michigan, Ohio, and Tennessee starting in January, according to The Detroit News. Of those, over 1,750 workers will be laid off indefinitely, while roughly 1,500 are expected to be called back by mid-2026. Why the Cuts? General Motors cited slower near-term electric vehicle adoption as a key reason for the job reductions. The market for electric vehicles has not grown as quickly as expected, prompting GM to realign its production capacity. (RELATED NEWS: General Motors CEO Pulls Back on EV Ambitions) Changes in the regulatory environment and incentives also played a part. For example, federal tax credits for new EV purchases expired recently, reducing incentives for buyers and adding pressure on manufacturers. GM reported it will take a $1.6 billion charge tied to scaling back EV production and restructuring. That means the company is rethinking how to build its EV business in the U.S. while staying resilient through change. What Exactly Is Being Cut? At the heart of the cuts is GM’s biggest all-electric assembly plant, known as Factory Zero in Detroit. There, GM will pause production on one shift and permanently eliminate about 1,200 jobs out of roughly 3,400 workers furloughed this summer. The plant will then resume on a single shift and determine which senior workers will return. Additionally, the battery-cell plants operated by GM’s joint venture Ultium Cells LLC in Warren, Ohio, and Spring Hill, Tennessee, will see temporary shutdowns beginning January 2026. About 850 workers in Ohio and 710 in Tennessee will face temporary layoffs, and another 550 in Ohio will be laid off indefinitely. GM emphasized that many affected employees may still receive a portion of their wages or salary plus benefits during the downtime. What It Signals for GM and the Industry In one sense, these job cuts show that GM is pivoting. The company says it remains committed to its U.S. manufacturing footprint and wants to build flexibility into its operations. But at the same time, it acknowledges that the EV roll-out will not follow the accelerated timeline it once expected. The timing also matters. With EV incentives declining and competition rising, automakers face pressure to manage costs and inventory. As a result, GM is reducing production to match demand and avoid a buildup of unsold vehicles. In the broader context, this is a reminder that the transition to electric vehicles is not a straight line. It involves shifts in consumer behavior, government policy, supply-chain constraints, and manufacturing strategy. The cuts at General Motors reflect those realities. What It Means for Workers and Communities Of course, the human side of this story matters. Workers at the Detroit plant and the battery-cell facilities face job uncertainty. Yet, GM has committed to supporting those people with benefits, continued pay in some cases, and union programs where applicable. Local communities around Detroit, Ohio, and Tennessee will also feel the impact. When major plants reduce shifts or pause production, the ripple effects extend to suppliers, service providers, and the regional economy. At the same time, General Motors says the pause in production will be used to upgrade facilities and build capabilities for the next generation of EVs — suggesting that the work may evolve rather than simply disappear. Why This Matters for Investors and Consumers For investors, the move carries both risk and opportunity. On one hand, scaling back electric Vehicle production may be seen as a setback in the race to electrify transportation. On the other, the acknowledgement of market realities and a shift toward flexibility may position GM more sustainably long term. For consumers, a slowdown in EV adoption signals that the marketplace for electric vehicles is still maturing. Factors like cost, charging infrastructure, range anxiety, and incentives continue to shape whether buyers move from internal-combustion vehicles to EVs. (MORE NEWS: High-Tech Bank Scam Leaves Victims Penniless in Seconds) Looking Ahead Going forward, several key questions will shape how the story unfolds: Will EV demand rebound? If incentives return, charging access improves or costs come down, demand could accelerate again. Can GM leverage its upgraded plants and battery facilities? The investments in flexibility and next-generation manufacturing could pay off if timed well. How will policy and regulation shift? Federal or state governments may revise incentives or emissions targets, which would change the cost-benefit equation for EVs. How will the workforce adapt? For the workers affected, retraining, redeployment, and transition support will matter. Final Word GM’s decision to lay off over 1,700 workers indefinitely — and furlough many more temporarily — marks a significant adjustment in its EV strategy. The shift is grounded in slower than expected EV adoption, changing regulatory incentives, and a need to scale manufacturing in line with demand. While challenging for workers and communities, GM frames the move as part of a long-term transition toward a more flexible, resilient manufacturing model. As the EV market continues to develop, what happens at GM may offer insight into how the auto industry evolves in the coming years. Forget the narrative. Reject the script. Share what matters. At The Modern Memo, we call it like it is — no filter, no apology, no corporate leash. If you’re tired of being lied to, manipulated, or ignored, amplify the truth. 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General Motors CEO Pulls Back on EV Ambitions
General Motors once promised a fast transition to electric vehicles. The company spoke boldly about ending gas car production and moving fully into a new future. Now, under CEO Mary Barra, GM is slowing that plan. The auto giant is investing again in gas engines while softening its electric targets. This change shows how customer demand and practical realities are reshaping the future of cars. GM’s Original Bold EV Plan In 2021 and 2022, General Motors announced big goals. Mary Barra pledged that GM would stop selling internal combustion cars by 2035. She also promised that 30 new EV models would hit global markets by the middle of the decade according to the Wall Street Journal. At the same time, the company began converting plants to EV production. Those announcements positioned GM as a leader in the EV market. The automaker seemed determined to take on Tesla and other early electric players. For a time, GM looked like it would drive the industry forward. (MORE NEWS: 1 in 3 U.S. Drivers Lack Enough Car Insurance, Study Warns) But the Daily Mail said in July that General Motors “reported $1.89 billion in net income for the second quarter, a sharp $1.1 billion decline from $2.93 billion during the same period last year. That’s a 35 percent drop from the previous quarter alone.” The momentum and appeal ov EVs is waning. A Shift in Tone and Strategy Now GM’s tone has changed. The company no longer talks about ending gas cars by 2035. Instead, Barra describes the shift as a process that must follow what customers want. GM has delayed or canceled several EV projects. Some plants once meant for EVs now build trucks and SUVs with gas engines. This shift signals that GM is moving away from promises that may not match the market. The company insists it still believes in EVs, but it is not forcing the change. Why GM Is Slowing Down There are several reasons behind the slowdown. First, EV demand is weaker than expected. Many drivers prefer gas cars because they are familiar, flexible, and reliable. Families worry about charging stations and long charge times. High prices also push buyers away from EVs. Second, tax credits that helped EV sales are fading. Without these breaks, electric cars cost more than many people can afford. Third, political fights around fuel economy rules create uncertainty. General Motors has pushed back against stricter standards that do not line up with what drivers are actually buying. A Renewed Focus on Gas and Hybrid Vehicles While slowing EV plans, GM is doubling down on gas vehicles. The company is spending billions to upgrade factories that make trucks and SUVs. These vehicles remain GM’s most profitable products and are still in high demand. (MORE NEWS: Trump Admin and Musk’s xAI Launch Federal AI Partnership) GM is also investing in V-8 engines, showing its belief in the long future of gas power. At the same time, the company is exploring hybrids as a middle option. This dual strategy protects profits while keeping EVs available for those who want them. Lobbying and Political Pressure GM has also stepped up its presence in Washington. Leaders like California Governor Gavin Newsom have criticized the company for resisting stricter emissions rules. Fox Business reported his comments about the situation last week: “We’ve ceded that. GM sold us out. Mary Barra sold us ou. Eliminating Ronald Reagan’s work, eliminating the progress we’ve made under the California Resources Board of 1967 where we began the process of regulating tailpipe emissions. The Republicans rolled that back this year, Donald Trump’s leadership. But the American automobile manufacturers allowed that to happen, GM led that effort.” At the same time, GM is working to ensure that regulations reflect real-world consumer demand. This debate highlights a central issue: many Americans simply do not want electric cars. For them, gas and hybrid vehicles remain the best choice. Balancing Profit and Choice Mary Barra’s leadership reflects a clear balance. On one hand, General Motors is keeping EVs in its lineup for buyers who want them. On the other hand, the company is protecting its core market of trucks, SUVs, and traditional cars. By keeping both options open, GM avoids forcing drivers down a single path. That choice is important for families, businesses, and rural communities that rely on gas vehicles every day. Industry-Wide Challenges GM is not the only automaker adjusting. Ford, Toyota, and others have slowed their EV rollout. High costs, battery supply issues, and slower consumer adoption affect the entire industry. At the same time, companies like Tesla continue to focus only on EVs. The split shows that there is no single road ahead. Drivers want options, and carmakers are taking different approaches to meet that demand. Public Image and Reputation This new strategy could affect GM’s reputation. The company once branded itself as fully committed to an all-electric future. Now it is seen as more cautious. For drivers who want EVs, that may sound like backtracking. But for drivers who prefer gas vehicles, GM’s decision is welcome. In the end, the move highlights a basic truth: not everyone will choose electric. By keeping gas and hybrid cars strong, GM is listening to millions of Americans who value freedom of choice. The Road Ahead Looking ahead, General Motors must continue to balance both sides. If EV sales grow quickly, GM has products ready. If gas vehicles remain strong, GM will keep delivering trucks, SUVs, and cars people love. Mary Barra’s decision reflects a flexible strategy. It avoids locking customers into one future. Instead, it allows the market to decide. That approach respects drivers and keeps GM competitive in a changing industry. Conclusion: Why Choice Matters The future of driving should be defined by freedom, not force. Some people are excited about electric cars, while others prefer the reliability and range of gas vehicles. Many families simply want the option that fits their needs best. When companies and governments allow drivers to choose, innovation grows naturally, and…