General Motors (NYSE:GM) has announced a delay in the production of its electric pickup trucks at a factory near Detroit, citing slowing demand for electric vehicles in the United States, the need to manage capital investments more effectively, and to implement engineering changes.
Originally planned to begin production next year, the Orion Township, Michigan factory will now focus on manufacturing electric Chevrolet Silverado and GMC Sierra pickups starting in late 2025.
GM spokesperson Kevin Kelly clarified that this decision is not linked to the ongoing partial strike by United Auto Workers union members but is influenced by market dynamics. GM also aims to make engineering adjustments to enhance the profitability of the electric trucks.
Around 1,000 workers at the Orion plant will continue to build the Chevrolet Bolt hatchback small electric car and Bolt electric utility vehicle through the end of the year, as originally planned.
GM intends to offer affected workers positions at other Michigan factories until the Orion plant reopens.
Meanwhile, GM’s “Factory Zero,” an electric vehicle plant straddling the Detroit-Hamtramck border, will maintain production of the Chevrolet Silverado work truck, the GMC Hummer EV, and the Cruise Origin electric ride-hailing shuttle. The company plans to ramp up production at Factory Zero next year, including adding a second shift.
In the U.S., the demand for electric vehicles has started to plateau after several years of rapid growth. In August, EVs accounted for 8.3% of total vehicle sales, with nearly 111,000 units sold, but September saw a drop to 7.9% and just under 106,000 EV sales.
Despite an almost 60% year-over-year increase in EV sales in August, that growth rate fell to 56% in September.
Sam Fiorani, an analyst with AutoForecast Solutions, noted that EV inventory is growing, and prices are falling as demand levels off. He anticipates continued EV sales growth, though at a slower rate than before. The U.S. government is offering a tax credit of up to $7,500 for EV buyers or lessees, which will become available at the time of purchase next year, rather than during tax return filing.
Featured Image: Megapixl © Lindaparton
Author Stephanie Bédard-Châteauneuf 
