General Motors is cutting 1,750 jobs indefinitely—and idling key electric vehicle (EV) factories—after the federal government abruptly eliminated the $7,500 EV tax credit on September 30, 2025. The move, announced Wednesday, signals a major setback for America’s EV transition and reflects the volatile impact of shifting federal policy on auto manufacturing.
Table of Contents
- EV Job Cuts by State
- Why the Tax Credit Mattered
- Factories Hit by Shutdowns
- Broader EV Market Impact
- Is GM Still Committed to EVs?
- Sources
EV Job Cuts by State
The layoffs span three critical auto-manufacturing states:
| State | Indefinite Layoffs | Temporary Layoffs |
|---|---|---|
| Michigan | 1,200 (Detroit Factory Zero) | 120 (stamping & components plants) |
| Ohio | 550 (Warren battery plant) | 850 |
| Tennessee | 0 | 700 (Spring Hill battery plant) |
In total, 1,750 workers face indefinite layoffs, while another 1,670 are on temporary furlough. This follows earlier cuts this month: 200 salaried staff in Warren, Mich., and 300 IT workers in Georgia.
Why the Tax Credit Mattered
The now-expired $7,500 federal tax credit was a cornerstone of EV affordability. For mid-priced models like the Chevrolet Equinox EV ($35,000), the credit effectively lowered the sticker price by over 20%. Without it, demand has stalled—especially as interest rates remain elevated and charging infrastructure lags.
“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the company said in a statement.
Factories Hit by Shutdowns
GM’s flagship EV plant, Factory Zero in Detroit, will remain shuttered until January 5, 2026, and reopen with just one shift instead of two. Meanwhile, its joint-venture battery plants—Ultium Cells in Warren, Ohio, and Spring Hill, Tennessee—will also idle on January 5 and stay closed until mid-2026.
These facilities were central to GM’s $35 billion EV investment plan launched under the Biden administration. Now, the company has taken a $1.6 billion charge to reflect declining plant valuations and canceled supplier contracts.
Broader EV Market Impact
GM isn’t alone. The entire EV sector is retrenching:
- Rivian laid off 600 workers last week.
- Volkswagen will pause ID.4 production in Chattanooga this month.
- Even Tesla, the market leader, has slashed prices repeatedly to sustain demand.
Analysts say the sudden removal of the tax credit—part of the Trump administration’s rollback of climate policies—has created market whiplash. “You can’t build a sustainable EV ecosystem on policy yo-yoing,” said one Detroit-based auto strategist.
Is GM Still Committed to EVs?
Despite the cuts, GM insists it remains “committed to our U.S. manufacturing footprint.” The company still plans to sell high-end EVs like the $125,000 Cadillac Escalade IQ and expand its Ultium platform long-term.
But near-term reality is clear: without consumer incentives, even industry giants are hitting the brakes.
Sources
The New York Times: G.M. Will Cut 1,750 Jobs in Electric Vehicle Business
General Motors Official Statement
U.S. Department of Energy: EV Tax Credit History
