Companies hit the brakes on EVs, laying off thousands of workers

**Automakers Pull Back on Electric Vehicle Investments Amid Policy Changes**

*By Rachel Frazin | The Hill | November 4, 2025*

In recent weeks, automakers and other companies in the vehicle industry have been scaling back their investments in electric vehicles (EVs), including implementing layoffs across multiple states. These developments come in the wake of the Republicans’ **One Big Beautiful Bill Act**, which repealed consumer incentives for purchasing electric cars.

General Motors (GM), in particular, is set to lay off 1,200 workers from its Detroit plant and another 550 from its Ultium Cells plant in Ohio. Additionally, 850 employees at the Ohio Ultium Cells plant and 710 at an Ultium factory in Tennessee are being temporarily laid off.

While these layoffs represent some of the largest recently announced, they are not the only ones. Reuters reported that another company cut 5 percent of its workforce, amounting to over 600 jobs. Furthermore, Freudenberg e-Power Systems announced this week that it would be closing two EV battery facilities in Michigan, resulting in 324 layoffs.

“We have reached this difficult decision due to the decrease in demand for heavy-duty electric and hybrid electric vehicles in North America,” the company said in a statement.

These moves follow the expiration of a tax credit that had offered consumers up to $7,500 in savings on EV purchases. The credit expired at the end of September as part of this year’s tax and spending bill.

GM, whose representatives did not immediately respond to *The Hill’s* request for comment, referenced government policies and the end of incentives in a recent note to investors as reasons necessitating a reassessment of its electric vehicle strategy. “With the evolving regulatory framework and the…,” the statement read (excerpt).

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**Community Reactions**

Some responses from community members reflect a political divide. One user suggested that automakers should have been listening more closely to their customer base rather than political figures, while another expressed a critical view of progressive policies.

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*Read more at thehill.com*

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