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GM Slashes EV Production Plans Despite Record Sales

General Motors (GM) announced plans to reduce its electric vehicle (EV) production, including the much-anticipated Chevy Bolt EV, despite achieving record sales in August. The shift comes in response to what GM describes as “irrational” discounts set to expire at the end of September 2023. In August, GM sold over 21,000 electric vehicles, marking its highest monthly sales ever, significantly outpacing rival Ford’s 10,671 units sold.

In a memo to employees, GM revealed that it intends to cut output at its Spring Hill, Tennessee, plant. According to a source familiar with the situation, GM will halt production of two Cadillac models—the Lyriq and the larger Vistiq—beginning in December. This reduction will lead to decreased output over the first five months of 2026, as GM plans to suspend one of its two shifts at the facility, potentially resulting in layoffs for affected workers.

Additionally, the source indicated that the start of a second shift at the Fairfax assembly plant, located outside of Kansas City, has been delayed indefinitely. This plant is slated to produce the new Chevy Bolt EV later this year. GM stated it is making “strategic production adjustments” in anticipation of slower growth in the EV market and reduced customer demand.

While GM expects a robust demand for EVs in September, it anticipates a slowdown in the fourth quarter following the expiration of the $7,500 federal tax credit on September 30. The company noted, “We are seeing marginal competitors dramatically scale back their products and plans, which should end much of the overproduction and irrational discounts.”

Despite a potentially contracting EV market, GM remains optimistic about growing its market share. The news follows GM’s recent announcement about slowing production of the GMC Hummer EV and Cadillac Escalade IQ at its Factory Zero plant in Detroit. For the first eight months of the year, GM continues to hold the position of the second-best-selling EV manufacturer, trailing only Tesla.

The Chevy Equinox EV, touted as “America’s most affordable 315+ range EV,” is projected to be the third most popular EV in the US by 2025, following the Tesla Model Y and Model 3. Consumers can expect to see the new Chevy Bolt EV make its debut later this year, with hopes it will capture significant market interest.

GM’s current strategy reflects its efforts to balance production with market realities, opening the door for competitors such as Hyundai, Kia, and Volvo to potentially gain market traction. As the automotive industry continues to navigate the transition to electric vehicles, GM’s moves will be closely watched by both investors and consumers alike.

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