GM(US:GM) Hua Er Jie Jian Wen·2025-10-29 18:07Core Insights - The shift in policies under the Trump administration, including the cancellation of electric vehicle tax credits and increased tariffs, has forced General Motors (GM) to significantly scale back its electric vehicle operations, resulting in thousands of workers losing their jobs or being placed on unpaid leave [1][3] Group 1: Workforce Impact - GM has notified three factories that approximately 5,500 employees will be temporarily laid off as the company reassesses electric vehicle production demand [1] - The layoffs include about 1,700 workers in Michigan and Ohio, with 1,200 in Detroit's electric vehicle plant and 550 permanent layoffs at the Ultium battery plant in Ohio [1][2] - The Factory Zero plant in Detroit has already seen 3,400 workers placed on unpaid leave, with plans to reduce operations from a double shift to a single shift, significantly cutting production capacity [2] Group 2: Production Adjustments - GM plans to evaluate its production capacity and will recall about 1,200 workers when Factory Zero resumes single-shift operations in January [2] - The company has announced a suspension of production at its Ohio and Tennessee battery plants starting in January 2026, with expectations to resume operations by mid-next year [2] Group 3: Strategic Challenges - The recent layoffs and production cuts reflect GM's overall contraction, exacerbated by the termination of the federal tax credit for electric vehicle purchases at the end of September [3] - Despite a surge in electric vehicle sales across the industry in Q3, driven by consumers rushing to purchase before the tax credit expiration, this demand is viewed as unsustainable [3] - GM's CEO has indicated the need for structural adjustments to lower production costs for electric vehicles, despite a belief in the strong future of electric vehicles [3]