General Motors announced this week that it will scale back production of both the Cadillac Lyriq and Vistiq in addition to the upcoming Chevrolet Bolt EV. The brand expects EV sales to slow significantly once the $7,500 Federal EV Tax Credit expires at the end of this month.
Tax Credits Helped Spur EV Adoption, Now They’re Vanishing
In the case of the Lyriq and Vistiq, production will be paused in December, and manufacturing will halt for a week in November and October. Further slowdowns will come during the first half of 2026, with a temporary layoff for one shift of workers. Those won’t be the only GM workers missing out on paychecks, as another shift won’t be instituted as planned at GM’s Kansas City plant, where Bolt production is set to begin later this year.
GM Senior VP and President, North America, Duncan Aldred, had this to say in a statement: “We’re expecting strong demand once again in September. The question, of course, is what’s next? There’s no doubt we’ll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize. We will almost certainly see a smaller EV market for a while, and we won’t overproduce. Still, we believe GM can continue to grow EV market share.”
Related: GM Cuts Back Hummer EV and Escalade IQ Production Amid Slowing Demand
Political Action Hurts EV Demand And Limits Consumer Choice
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The Trump Administration’s electric vehicle policy is billed as removing “mandates” on EV adoption in the name of an open and free market with plenty of consumer choice. In reality, its policies have had the opposite effect. As incentives for EVs stagnate or are removed entirely as a result of legislation like the One Big, Beautiful Bill Act, automakers are reacting by cutting EV production, limiting the options consumers have to choose from.
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