By David Shepardson and Nora Eckert
DETROIT (Reuters) -General Motors said on Wednesday it will cut U.S. electric vehicle and battery production and 1,200 factory jobs at its EV plant in Detroit, as the automaker responds to a significant slowdown in demand for its battery cars.
The Detroit automaker said it will halt battery cell production at its two U.S. joint-venture battery plants – in Tennessee and Ohio – in January for about six months. It added it will temporarily lay off about 1,550 workers at the factories.
In addition, at the Ohio plant, GM said it will lay off 550 workers indefinitely. GM operates the Ohio plant jointly with South Korea’s LG Energy Solution.
GM said it will cut production at its Detroit EV plant to just one shift starting in January, compared with the two shifts at present. This will cut output by about 50%, it said. The plant produces three large electric pickup trucks, including the Chevrolet Silverado and GMC Sierra, as well as the EV Escalade IQ and Hummer SUV.
GM said the cuts were “in response to slower near-term EV adoption and an evolving regulatory environment.”
GM has been paring its outlook for EV sales after the Trump administration slashed a key federal incentive, which further dampened already-slowing demand.
A $7,500 tax credit on battery-powered models expired at the end of September, and the U.S. government has further loosened vehicle-emissions regulations, which has weighed on EV sales.
The Detroit automaker took a $1.6 billion charge earlier this month related to changes in its EV strategy.
GM shares were down 0.3% at $69.65 at midday on Wednesday. The shares have gained more than 35% so far this year.
(Reporting by David Shepardson in Washington, Nora Eckert in Detroit and Utkarsh Shetti in Bengaluru; Editing by Leroy Leo and Matthew Lewis)
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