General Motors officials on Wednesday announced the layoff of 3.300 workers as the U.S. automaker scales back its electric vehicle manufacturing amid federal regulatory changes and other market challenges. File Photo by Justin Lane/EPA
Oct. 29 (UPI) — Automaker General Motors laid off 3,300 workers at manufacturing plants in Michigan, Ohio and Tennessee amid changes in the nation’s electric vehicle market.
The layoffs affect 1,200 workers at GM’s electric vehicle manufacturing plant in Detroit and 550 at the Ultium Cells battery plant in Ohio, CNBC reported on Wednesday.
Also laid off are 850 workers at the Ohio Ultium Cells plant, plus another 700 in Tennessee, but those layoffs are temporary.
GM officials attributed the layoffs to market conditions for electric vehicles.
“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” company officials said in a prepared statement.
“Despite these challenges, GM remains committed to our U.S. manufacturing footprint, and we believe our investments and dedication to flexible operations will make GM more resilient and capable of leading through change.”
The automaker’s all-electric Factory Zero Detroit-Hamtramck Assembly Center remains open, but only for one shift per day, according to The Detroit News.
GM officials said affected workers might be eligible for pay and benefits as outlined by the National GM-UAW agreement.
The change reflects the end of $7,500 tax credits for consumers who buy or lease qualifying electric vehicles.
Federal regulators also have removed penalties for greenhouse gas emissions, which boosts the profitability of producing vehicles that are equipped with internal combustion engines.
EV proponent Jameson Dow blamed the Trump administration and congressional Republicans for the GM layoffs due to their EV policies.
Eliminating the EV tax credit that was created in 2022 is the primary way that the Trump administration and GOP have lessened the demand for EVs and their production in the United States, he said.
As GM slows its EV production, Dow said, foreign carmakers are bound to take over some of the EV market formerly owned by the U.S. automaker.
GM also recently announced a $1.6 billion loss during the last quarter due to regulatory changes and their impact on the nation’s auto market.
