DETROIT, Oct 29 (Reuters) - General Motors ( GM ) said
on Wednesday it will cut U.S. electric vehicle and battery
production and 1,200 factory jobs at its EV plant in Detroit, as
the automaker responds to a significant slowdown in demand for
its battery cars.
The Detroit automaker said it will halt battery cell
production at its two U.S. joint-venture battery plants - in
Tennessee and Ohio - in January for about six months. It added
it will temporarily lay off about 1,550 workers at the
factories.
In addition, at the Ohio plant, GM said it will lay off 550
workers indefinitely. GM operates the Ohio plant jointly with
South Korea's LG Energy Solution.
GM said it will cut production at its Detroit EV plant to
just one shift starting in January, compared with the two shifts
at present. This will cut output by about 50%, it said. The
plant produces three large electric pickup trucks, including the
Chevrolet Silverado and GMC Sierra, as well as the EV Escalade
IQ and Hummer SUV.
GM said the cuts were "in response to slower near-term EV
adoption and an evolving regulatory environment."
GM has been paring its outlook for EV sales after the Trump
administration slashed a key federal incentive, which further
dampened already-slowing demand.
A $7,500 tax credit on battery-powered models expired at the
end of September, and the U.S. government has further loosened
vehicle-emissions regulations, which has weighed on EV sales.
The Detroit automaker took a $1.6 billion charge earlier this
month related to changes in its EV strategy.
GM shares were down 0.3% at $69.65 at midday on Wednesday.
The shares have gained more than 35% so far this year.