General Motors is further scaling back electric vehicle production in the United States, shifting focus to gasoline-powered models as state incentives for EV purchases are set to expire at the end of the month.
According to a new Reuters report, which cites internal communications and a source familiar with the matter, General Motors will halt production of two electric Cadillac SUVs in Spring Hill, Tennessee, in December.
Production halt will affect the midsize Cadillac Lyriq — one of GM‘s best-selling EVs — and the larger fully electric Cadillac Vistiq.
The automaker also plans to scale back output in the first five months of next year by temporarily cutting one of the two worker shifts, the sources said.
General Motors‘ assembly plant near Kansas City is expected to begin manufacturing operations of the Chevy Bolt EV later this year — which was previously produced in its Orion plant, up until 2022.
However, the planned addition of a second shift has also been indefinitely delayed, according to the sources.
In Orion, production for EVs was also postponed several times last year, with the company saying that demand for electric vehicles was weaker than initially expected.
In July, GM halted its plans to produce EVs in Orion, telling its employees it will produce internal combustion engine (ICE) vehicles in the site instead.
Earlier this year, it had identified the Orion plant is one of three facilities — together with Fairfax, in Kansas, and Spring Hill, in Tennessee — that will share a $4 billion investment to expand production of ICE-powered vehicles.
Last month, as the company reported its second quarter earnings results, CEO Mary Barra said that “despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star.”
Barra reaffirmed that the company is adjusting to “changing demand” and wrote that “overall, GM is well positioned to succeed in an ICE market that now has a longer runway.”
Earlier this week, a new filing with the US Securities and Exchange Commission disclosed that the chief executive has slashed her holdings in the company by 40.3% in late August.
Over the past six months, the CEO has made four stock transactions — selling a total 994,863 shares, which netted her about $57.93 million.
General Motors‘s stock surged 9.4% in the past 30 days and 22.6% in the past three months.
