GM Scales Back Chevy Bolt EV Launch Amid Tax Credit Cuts
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General Motors Co. will start the launch of the Chevrolet Bolt electric vehicle in December with one shift at its plant in Kansas after initially planning to build the plug-in compact on two shifts due to uncertain demand, the company said.
GM is bracing for the early expiration of $7,500 in consumer tax credits for the purchase of EVs added during the Biden administration that President Donald Trump and the Republican Congress have cut. The loss of the tax credits could undermine EV sales, so GM is cutting production of the Bolt and two Cadillac EVs until the automaker can measure the impact.
鈥淕eneral Motors is making strategic production adjustments in alignment with expected slower EV industry growth and customer demand,鈥 the company said in a statement.听
The company will also take downtime at its听, Tenn., assembly plant, where it builds the Cadillac Lyriq and Vistiq EVs alongside gasoline powered Cadillac SUVs, the company said. 听
Trump鈥檚 $3.4 trillion fiscal package has not only cut sales incentives but also eliminated fines for automakers who miss federal fuel economy targets. That move also reduces the incentives for automakers to sell EVs, which generate credits to meet those targets.
While GM is reducing production of EVs, the company听announced听in June it will boost production of large pickups and SUVs at a plant in suburban Detroit in 2027.
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