02.04.2026 12:24
General Motors has decided to halt production due to a slowdown in electric vehicle demand and rising costs. The company has suspended production at some factories while reducing the number of shifts. As part of the decision, the layoff of thousands of employees has been brought up. Experts indicate that high costs and weak demand are leading to a global slowdown in the electric vehicle sector.
American automotive giant General Motors (GM) has hit the brakes on electric vehicle production. The company decided to reduce production due to demand falling short of expectations and uncertainties in the industry.
PRODUCTION STOPPED AT FACTORIES
Production has been temporarily halted at GM's flagship facility, "Factory Zero," located in Michigan. The company has decided to change its production model from a two-shift system to a single-shift system.
Production has also been paused at battery factories in Ohio and Tennessee.
THOUSANDS OF PEOPLE ARE BEING LAID OFF
As part of the decision, approximately 1,750 employees are being laid off, while it has been announced that 1,670 employees are temporarily affected by the layoffs. In battery production facilities, hundreds of employees are also expected to be laid off or temporarily suspended from work.
DEMAND FOR ELECTRIC VEHICLES HAS DROPPED
This decision by the company was made due to the slower-than-expected demand for electric vehicles and high costs. Experts indicate that high interest rates and uncertain regulations are suppressing consumer demand.
BILLIONS OF DOLLARS IN LOSSES EXPECTED
GM's plan to reduce production is expected to result in approximately $1.6 billion in losses by the third quarter of 2025. Nevertheless, the company emphasizes that it will not completely abandon electric vehicle investments in the long term.
CRISIS IN THE INDUSTRY DEEPENS
This step taken by GM has revealed that the transition to electric vehicles in the global automotive industry is progressing more challenging than expected. Similarly, many manufacturers are also reassessing their production plans.