DETROIT — General Motors is cutting 1,750 jobs across several U.S. plants as part of a broad reduction in electric vehicle production following the end of a key federal subsidy.
The automaker said Wednesday the layoffs will be indefinite and concentrated in Michigan, Ohio and Tennessee. Another 1,670 workers will face temporary layoffs in the months ahead as the company adjusts output to weaker demand for electric models.
The decision follows the expiration of a $7,500 federal tax credit for new electric vehicle purchases and leases. The incentive ended on Sept. 30 after President Donald Trump and Congress withdrew funding for the program.
Without the subsidy, sales of electric cars and trucks are expected to drop sharply in the final quarter of 2025, forcing manufacturers to reassess production targets. Analysts say the loss of the credit is likely to affect not only GM but the broader electric vehicle industry, which had relied on the incentive to offset higher sticker prices.
GM said it is realigning its production capacity in response to slower adoption rates and changing regulations, though it remains committed to maintaining its U.S. manufacturing presence. The company has invested heavily in electric vehicle platforms in recent years, including its Ultium battery technology and a series of new electric trucks and SUVs.
The layoffs mark another setback for the auto industry’s transition toward electric vehicles, already strained by shifting consumer demand, high interest rates and uncertainty over long-term government support for clean energy programs.
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