General Motors is cutting more than 3,000 jobs associated with its electric vehicle and battery programs—one of the largest industry clawbacks since U.S. policy shifted away from EV mandates earlier this year. The layoffs are a function of GM trimming electric vehicle production to match declining demand.
Factory Zero will be the hardest hit. The Hamtramck assembly plant dedicated to GM’s large electric vehicles—GMC’s Hummer EV and Sierra EV, Chevrolet’s Silverado EV, and Cadillac’s Escalade IQ—will see about 1,200 employees lose their jobs as the facility shrinks to a single shift. Additional cuts include 550 permanent layoffs and 850 temporary furloughs at the Ultium Cells battery plant in Ohio, 700 temporary layoffs at its Spring Hill, Tennessee battery site, along with smaller reductions at EV component plants in Michigan and New York.
The Wall Street Journal reports that about 1,700 workers will permanently lose their jobs, while another 1,500 will be temporarily laid off, with a potential return sometime next year.
The company’s decision follows a steep drop in electric vehicle sales after the $7,500 federal tax credit expired in late September. According to the Detroit News, GM still has an estimated 39,000 EVs sitting on dealer lots, even after discounting models like the Chevrolet Blazer EV and Cadillac Lyriq.
GM has already scaled back several EV programs, including canceling its BrightDrop electric delivery vans, reinstating plans to build a gas-powered Cadillac CT5, and reversing a decision to convert its Toledo transmission plant into an EV drive unit facility. The company recently booked a $1.6 billion charge related to EV investments that are no longer expected to turn a profit.
“Last week, GM raised its expected annual profits to $13 billion dollars,” United Auto Workers President Shawn Fain said in a statement. “This week, they announce layoffs. So let’s be clear: GM is a profitable company, our members remain ready to work, and the UAW will continue to fight for more investment in both ICE and EV production at GM and beyond.”
[Images: General Motors]
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