GM Scales Back EV Production and Cuts Jobs Amid Slowing U.S. Demand
General Motors announced it will scale back U.S. electric vehicle (EV) and battery production and cut 1,200 jobs at its Detroit EV plant amid slowing demand for battery-powered cars. The automaker will suspend battery cell production for six months at its joint-venture plants in Tennessee and Ohio starting in January, temporarily laying off 1,550 workers and permanently cutting 550 positions at the Ohio facility.
Production at GM’s Detroit plant will be reduced to one shift, cutting output by about 50%. Citing “slower near-term EV adoption and an evolving regulatory environment,” GM joins other automakers like Nissan and Stellantis in pulling back on EV plans as demand declines and federal EV tax credits expire. The company has canceled several projects, including its BrightDrop electric van, and continues to lower its EV sales outlook.
UAW President Shawn Fain criticized GM for job cuts despite strong profits, pledging to push for more investment in both EV and traditional vehicle production. CEO Mary Barra acknowledged slower-than-expected EV adoption but said GM aims to reduce EV losses by 2026, despite taking a $1.6 billion charge this month tied to its revised strategy.
Global Oil Prices Set to Fall as Supply Rises and Demand Growth Slows Through 2026
Global oil markets are expected to ease through 2026 as inventories build and production rises, leading to lower prices. The U.S. Energy Information Administration forecasts Brent crude to average $62 per barrel in late 2025 and $52 in 2026, reflecting a sharp drop from recent highs. Production growth will be driven mainly by non-OPEC+ countries, while OPEC+ gradually lifts earlier output cuts. U.S. crude production is projected to remain near record highs at 13.5 million barrels per day, sustained by steady Gulf of Mexico output.
Nexperia Crisis Reveals Ongoing Fragility in Auto Industry’s Chip Supply Chain
The Nexperia semiconductor crisis has once again exposed the fragility of the global auto industry’s chip supply chain, just years after the 2020–2023 shortage that halted millions of vehicle productions worldwide. Triggered by the Dutch government’s takeover of Nexperia and China’s subsequent export ban, the disruption affects “legacy” chips — simple but essential components like diodes and transistors used in nearly every vehicle system.