GM EV Truck Update 11-9-25

No, GM is not dropping its EV truck production in 2025, but it is slowing down its pace and delaying some planned expansions due to slower-than-expected EV demand and a focus on improving profitability. The company is temporarily idling some EV production facilities and adjusting its investments, including a one-year delay for a second EV truck factory in Orion, Michigan.  

Key points

Delayed expansion: GM has pushed back the conversion of its Orion Assembly plant into a second EV truck factory from late 2024 to late 2025.

Temporary shutdowns: The company is temporarily idling Factory Zero and two Ultium Cells battery plants from January to mid-2026 to retool and adjust production.

Adjusted investment: This is part of a broader reassessment of its EV strategy, including a $1.6 billion charge for adjusting EV capacity and investments.

Reasons for slowdown: The slowdown is attributed to factors like evolving EV demand, the need to improve profitability on its EVs, and the elimination of federal tax credits for EVs.

Current production: Despite the slowdowns and delays, GM continues to produce EV trucks, such as the Silverado EV and Hummer EV, at its Factory Zero plant.

BrightDrop discontinued: The company has also discontinued its BrightDrop EV van production due to slow demand and the loss of EV tax incentives. 

General Motors is not dropping its EV truck production entirely, but it has significantly scaled back and delayed its original production plans and targets for 2025 in response to slowing consumer demand, an evolving regulatory environment, and the end of federal tax incentives. 

Key changes in 2025 include:

Production Cuts and Pauses: GM announced temporary shutdowns and reduced shifts at several key EV and battery plants, including the Factory Zero plant (which produces the GMC Hummer EV, Chevrolet Silverado EV, and Cadillac Escalade IQ EV) and two Ultium Cells battery plants. These measures have resulted in temporary and indefinite layoffs for thousands of workers.

Delayed Expansion: The company postponed plans to add electric truck production, including the Chevrolet Silverado EV and GMC Sierra EV, at its Orion Assembly plant until late 2025, a delay from its original 2024 timeline.

Canceled Models: GM has completely ended production of the BrightDrop electric commercial vans.

Revised Targets: GM declined to reiterate its previous forecast of having the capacity to produce one million EVs in North America by the end of 2025, stating it will build to demand instead.

Financial Impact: GM has taken a $1.6 billion accounting charge related to these adjustments to its EV capacity and manufacturing footprint. 

Despite these significant reductions, GM is still producing its current EV truck and SUV models and remains committed to a long-term transition to electric vehicles, while also increasing production of profitable gasoline-powered vehicles to meet current market demands. 

https://www.google.com/search?q=is+gm+dropping+its+ev+truck+production+in+2025

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