General Motors has decided to postpone manufacturing of electric pickup trucks at a plant close to Detroit. This was done in order to better manage its capital investments, make certain engineering adjustments, and respond to the decreasing U.S. demand for electric vehicles.
The Orion Township, Michigan plant will instead begin producing electric Chevrolet Silverado and GMC Sierra pickups in late 2025, the firm announced in a statement on Tuesday. The business had initially intended to begin production in the upcoming year.
According to GM spokesperson Kevin Kelly, the decision is unrelated to the United Auto Workers union members' four-week partial strike that is currently underway. “What’s happening in the marketplace does play a factor,” said Kelly, who also said that GM wants to make engineering changes that will improve profit margins of the trucks.
Through the end of this year, about 1,000 workers at the Orion facility will continue to construct the Chevrolet Bolt electric utility vehicle and hatchback small car, according to a statement released by GM.
Until their plant reopens, workers will be given the opportunity to work at other Michigan firms, according to the statement.
At its 'Factory Zero' electric vehicle plant, which is located on the border between the Detroit suburb of Hamtramck and the city of Detroit, General Motors is now producing a Chevrolet Silverado work truck. The facility also produces the multi-passenger electric ride-hailing shuttle, Cruise Origin, and the GMC Hummer EV.
After seeing rapid growth for a few years, the demand for electric vehicles in the United States has begun to level down. For instance, automakers sold about 111,000 EVs in August, or 8.3 per cent of the market. However, sales fell to little under 106,000 in September, accounting for 7.9 per cent of the market.
A $7,500 tax credit is being offered by the U.S. government for those who buy or lease EVs. Buyers will be able to get the credit at the time of purchase by next year, rather than waiting until they file their income tax returns.
With inputs from Agencies