General Motors is set to slash over 1,700 jobs across its electric vehicle (EV) and battery manufacturing operations as the company seeks to adapt to a changing market landscape. The moves are largely attributed to slower than expected EV adoption and shifting regulatory dynamics.
According to GM's statement, the layoffs will predominantly affect workers at two major facilities: one in Michigan responsible for building the automaker's EVs and another in Ohio that produces battery cells for Ultium Cells, a key supplier of batteries to GM. Additionally, around 700 employees will be temporarily laid off at an Ultium Cells plant in Tennessee.
Industry insiders point to the expiration of a $7,500 federal tax rebate on EV purchases as a primary driver of the regulatory issues facing GM. This development, part of the "Big Beautiful Bill" package, has had far-reaching consequences for environmentally focused industries and programs. Notably, GM announced earlier this month that it would be phasing out its hydrogen fuel cell research and development to focus more intensely on battery technology and charging innovations.
By making these significant cuts, GM is signaling a shift in its strategy as the automotive industry continues to pivot towards electrification. However, critics are hailing the move as a "rough" decision, particularly given the company's earlier commitment to hydrogen fuel cell R&D.
According to GM's statement, the layoffs will predominantly affect workers at two major facilities: one in Michigan responsible for building the automaker's EVs and another in Ohio that produces battery cells for Ultium Cells, a key supplier of batteries to GM. Additionally, around 700 employees will be temporarily laid off at an Ultium Cells plant in Tennessee.
Industry insiders point to the expiration of a $7,500 federal tax rebate on EV purchases as a primary driver of the regulatory issues facing GM. This development, part of the "Big Beautiful Bill" package, has had far-reaching consequences for environmentally focused industries and programs. Notably, GM announced earlier this month that it would be phasing out its hydrogen fuel cell research and development to focus more intensely on battery technology and charging innovations.
By making these significant cuts, GM is signaling a shift in its strategy as the automotive industry continues to pivot towards electrification. However, critics are hailing the move as a "rough" decision, particularly given the company's earlier commitment to hydrogen fuel cell R&D.