GM lays off 1,700 workers at plants in Michigan and Ohio

NEW YORK — General Motors is laying off about 1,700 workers at manufacturing sites in Michigan and Ohio as the auto giant adjusts to slowing demand for electric vehicles.

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Detroit News first reported the cuts on Wednesday — they include about 1,200 jobs at an all-electric plant in the Detroit area and 550 workers at an Ultium Cells battery cell plant in Ohio, as well as hundreds of other employees it plans to temporarily lay off. GM later confirmed the news to The Associated Press.

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“In response to the slowdown in near-term electric vehicle adoption and regulatory developments, General Motors is realigning its electric vehicle capacity,” the company said in a statement, while maintaining its “remaining commitment to our U.S. manufacturing.”

GM added that Ultium Cells is also “adjusting production in response to recent changes in customer needs.” The battery cell production facility in Warren, Ohio, and the Spring Hill, Tennessee plant will be suspended starting in January 2026, the company said.

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According to Detroit News850 workers at the Ohio plant are subject to “temporary layoffs,” as well as another 700 employees in Tennessee.

GM says these affected employees “may be entitled to continue to receive a significant portion of their regular pay, as well as benefits.” The Michigan-based company said it will use the pause to upgrade both facilities and expects to resume operations by the middle of next year.

The decline in electric vehicle adoption reported by GM on Wednesday comes shortly after the recent expiration of federal tax credits. Until Sept. 30, new electric vehicles received a federal tax credit of $7,500 and up to $4,000 for used vehicles. But potential buyers can no longer claim this. The stimulus was eliminated as part of a massive tax and spending cut bill passed by Congress in June.

GM also recently laid off other parts of its workforce. For the last week it's included dismissal of 200 full-time employees — mostly computer-aided design engineers in Detroit — and another 300 job cuts in Georgia, where the company is closing its IT Innovation Center.