GM Backing Away from EV – Electric Vehicles

GM backs away a bit from it Electric Vehicle (EV) strategy. Manufacturing capacity was there. Sales was not there yet. If anything, this foray into EV manufacture will give them a chance to regroup. It takes time to recast their manufacturing capabilities for each year’s model change and what manufacturing facility will produce it. Usually, they are late to the market and in a hurry.

GM will not quit they will reorganize their marketing and manufacturing strategy. A couple of stories on what they are doing. I will add some more information later.

GM Warns of $1.6 Billion Impact from EV Production Cutback, EV, 14 October 2025

General Motors warned on Tuesday that its third quarter financial results have been impacted by a $1.6 billion loss from its EV strategy change.

The charges were approved by GM‘s board audit committee last week and were based on the realignment of the company’s electric vehicle production to match consumer demand.

While the company will only disclose its earnings report next Tuesday (October 21), a public filing has shown that the company estimates a $1.2 billion non-cash impairment, as manufacturing operations were trimmed.

The remaining $400 million represents actual cash costs, mainly from fees and settlements in cancelled contracts with suppliers.

The company stated that it may incur additional significant cash and non-cash charges in the future, which could impact its financial results and cash flows.

Earlier this year, GM halted plans to produce EVs in Orion, telling its employees it would produce internal combustion engine (ICE) vehicles at the site instead, citing higher demand for the powertrain.

The Orion plant is one of three facilities — together with Fairfax, in Kansas, and Spring Hill, in Tennessee — that will share a $4 billion investment to expand production of petrol-powered vehicles.

Last month, Reuters also reported the company is ending production of two electric Cadillac SUVs in Spring Hill by the end of this year.

However, on Tuesday the company stated that the strategic realignment will not impact its current lineup of Chevrolet, GMC, and Cadillac EVs in production, which will continue to be available to consumers.

General Motors expects “the adoption rate of EVs to slow,” following “recent US Government policy changes.”

On Tuesday’s filing, the company noted that it includes both “the termination of certain consumer tax incentives for EV purchases” on September 30 and “the reduction in the stringency of emissions regulations.”

In the third quarter, General Motors delivered a record 66,501 EVs, as demand rose ahead of the $7,500 consumer credit deadline.

In August, as the company reported its second quarter earnings results, CEO Mary Barra said that “despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our north star.”

By then, the CEO reaffirmed that the company was adjusting to “changing demand” and wrote that “overall, GM is well positioned to succeed in an ICE market that now has a longer runway.

“GM Lays Off 200 Tech Center Workers in Michigan,” EV, 24th October 2025

Detroit automaker General Motors has announced on Friday that it is laying off 200 employees at its global tech center, in Michigan.

Automotive News, which cited internal sources, reported that the message was delivered to the staff in an online meeting.

The company explained that the firings were due to “business conditions” and not performance-related.

The job cuts affected mostly engineers who worked in primarily Computer-Aided Design, or CAD.

“We’re restructuring our design engineering team to strengthen our core architectural design engineering capabilities,” the company wrote in an email, obtained by CNBC.

“As a result, a number of CAD execution roles have been eliminated,” GM said. “We recognize the efforts and accomplishments of the impacted team members, and we thank them for their contributions.”

The layoff happens just two days after GM reported better-than-expected financial results for the third quarter, which led the company to raise its guidance for the full year 2025.

GM expects adjusted EBIT of between $12-13 billion (up from $10-12.5) and $9.75-10.50 adjusted EPS (up from $8.25-10).

However, the net income, which represents the profit left after all expenses are deducted from the revenue, had its margin slashed in half compared to a year ago — from 6.3% to 2.7%.

Last week, GM warned that its third quarter financial results had been impacted by a $1.6 billion loss from its EV strategy change.

In a new update at its third quarter earnings call, the Detroit automaker said on it is also shutting down production of the BrightDrop electric delivery van.

Manufacturing operations in the Canadian assembly plant had already been suspended since May, with GM citing demand. By then, 500 people were laid off.

The impact of the decision has not been reflected in the third quarter financial results, with the company stating that its “actions on BrightDrop and our ongoing work to reset our capacity will cause us to recognize a charge in the fourth quarter.”

A year ago, General Motors cut about 1,000 jobs, most of them in the US, amid cost reduction efforts.

It had been its third workforce reduction in four months, following layoffs of over 1,000 employees in its software department and approximately 1,700 workers in September at a manufacturing plant in Kansas.

On Thursday, the Wall Street Journal reported that US EV maker Rivian is laying off 600 employees, marking the fifth layoff in less than two years.

The news came just a month after the company confirmed it was cutting jobs affecting about 1.5% of its workforce.