GM Lays Off Nearly 3,400 Workers Across EV Plants Amid $1.6 Billion Charge: Report

General Motors Co. (NYSE:GM) has reportedly laid off close to 3,400 workers at its production facilities in Ohio and Michigan as the company scales back EV efforts.

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GM Lays Off Employees At EV Facilities

The automaker has laid off over 1,200 employees at the Detroit EV plant, as well as over 550 layoffs at the Ohio Ultium Cell plant, in addition to the 850 temporary layoffs GM announced at the facility, The Detroit News reported on Wednesday.

General Motors didn't immediately respond to Benzinga's request for comment

GM is also laying off over 700 workers temporarily at the Ultium Battery Cell plant in Tennessee, as well as almost 120 workers at other EV-related plants face layoffs as well, the report suggests.

GM Scales Back EV Efforts Amid $1.6 Billion Charge

The news comes as GM, at the company's third-quarter earnings call, said that the U.S. market has seen a "significant pullback" in EV demand, with CFO Paul Jacobson saying that rivals were selling EVs for "whatever they could get" during the earnings call. The fall of EV demand came as President Donald Trump announced the end of the $7,500 Federal EV credit.

GM also announced it was ending the production of the BrightDrop Fleet EV Van at the company's production plant in Canada's Ontario province, citing low demand. Company CEO Mary Barra, however, said that EVs were the automaker's "North Star" during the earnings conference.

GM also announced that it took on a $1.6 billion charge related to EVs, with over $1.2 billion coming from EV capacity changes, while the rest of the $400 million in charges were related to contract cancellations.

Mary Barra Says There's Overcapacity In China's EV Market, Jim Farley's EV Adoption Prediction

Barra, during an appearance on a podcast, said that the Chinese EV market was grappling with an "overcapacity" issue amid the ongoing EV price war. "You can't have over 100 different OEMs in a country trying to compete, especially now that they're competing on price," Barra said. 

Meanwhile, Ford Motor Co. (NYSE:F) CEO Jim Farley recently predicted that EV adoption in the U.S. would stay at around 5% amid falling demand. Ford also recently paused production of the F-150 Lightning EV Pickup Truck, citing profitability concerns despite the vehicle claiming the best-selling EV Pickup title in the U.S.

GM scores well on Momentum and Value metrics, offering poor Growth but satisfactory Quality. It also boasts a favorable price trend in the Short, Medium, and Long terms. For more such insights, sign up for Benzinga Edge Stock Rankings today!

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