America’s auto policy is in flux yet again and it’s already messing with production schedules. General Motors is one of the first big names to blink. It will pause production of two electric models in December and scale back output well into 2026, a move that will bring temporary layoffs.

The decision follows policy changes from the Trump administration, which has scrapped the federal EVs tax credit and removed penalties for automakers that miss fuel efficiency targets. With fewer incentives in place, manufacturers have more reason to lean on gas-powered vehicles.

Read: Chevrolet’s Newest EV Sure Looks Familiar

According to a report from Reuters, GM’s production cuts will start in October and November when its assembly plant in Spring Hill, Tennessee, which is responsible for building the Cadillac Lyriq and Vistiq, is shuttered. In December, assembly of the two models will also be paused.

Production at this same plant will also be significantly curtailed through the first five months of 2026. This will force the company to temporarily lay off employees working on one of the two shifts at the plant

Ripple Effects at Other Sites

It’s not just this site in Tennessee that is impacted. GM has reportedly decided to indefinitely delay the start of a second shift at its plant near Kansas City. This site will be home to the next-generation Chevrolet Bolt, which is set to commence production later this year. While this move isn’t expected to impact the launch of the new Bolt, it does mean that The General will not ramp up production as much as it had initially planned.

Sales Momentum Meets Caution

GM’s electric lineup has been gaining traction, with August marking its strongest EV sales month to date at 21,000 units. The thing is, much of that surge is tied to the final days of the $7,500 federal tax credit, which expires at the end of the month. Without that incentive, demand for electric vehicles will likely ease.

The company admitted that changes are less about immediate EV demand and more about preparing for slower overall industry growth. In a statement to Reuters, GM said it is “making strategic production adjustments in alignment with expected slower EV industry growth and customer demand by leveraging our flexible ICE and EV manufacturing footprint.”

Still, executives are keen to emphasize that the automaker is not backing away from electrification entirely or they’re just putting on a brave face. According to GM head of North America Duncan Aldred, “the strength of our ICE portfolio will continue to separate our brands from the pack and give us flexibility and profitability that EV-only companies lack.”

The clean vehicle tax credit is set to expire on September 30 and that looming deadline has kept dealers busy. In fact, GM said “U.S. electric vehicle sales likely set an all-time monthly record in August” as consumers made a mad dash to buy an EV before the incentive expires.

Thanks to the rush, GM sold more than 21,000 EVs in August to set a new monthly record. While the automaker didn’t release hard numbers, they reported strong demand for the affordable Chevrolet Equinox EV as well as the upscale Cadillac Lyriq and GMC Sierra EV.

More: IRS Quietly Extends EV Tax Credit Deadline But There’s A Catch

General Motors went on to say they’re the second best-selling EV company in America and they’re expecting a busy September as well. What happens next is the big mystery, but sales are expected to collapse.

GM North America President Duncan Aldred said, “There’s no doubt we’ll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize.” He went on to say “we will almost certainly see a smaller EV market” and the company will respond by cutting production. Despite this grim outlook, Aldred believes they can still grow their electric vehicle market share.

As he explained, before the Inflation Reduction Act was passed, the strongest EV segments were for luxury and affordable vehicles. GM has these bases covered with Cadillac as well as the Equinox EV and reborn Chevrolet Bolt.

The automaker added, “We are seeing marginal competitors dramatically scale back their products and plans, which should end much of the overproduction and irrational discounts we’ve seen in the marketplace.” GM also noted their ICE-powered lineup will “continue to separate our brands from the pack and give us flexibility and profitability that EV-only companies lack.”

Baldauf

After a lengthy delay, Cadillac began Celestiq deliveries earlier this year. They’re now picking up pace and the latest model was delivered to Michigander Mark Mitchell.

His ultra-luxury flagship was delivered in a private ceremony at The Daxton Hotel in Birmingham yesterday. While Cadillac House is only a stone’s throw away in Warren, the hotel was a fitting location as it’s owned by Mitchell.

More: Cadillac Delivers First $350,000 Celestiq EV

Besides receiving his Siku Tricoat Celestiq, which features a Camelia and Sheer Gray interior, Mitchell got his car signed by GM President Mark Reuss, who was in attendance for the event. Mitchell was delighted and said, “The vehicle completely surpassed my expectations.”

As a brief refresher, the car features a dual-motor all-wheel drive system that produces 655 hp (488 kW / 664 PS) and 646 lb-ft (875 Nm) of torque. It’s powered by a 111 kWh battery pack, which provides approximately 303 miles (488 km) of range.

A Brand Revamp And A New XT5

While the Celestiq marks the company’s return to the ultra-luxury segment, Cadillac’s John Roth recently noted the brand was struggling as recently as 2015. As he explained, “The product portfolio was good, but not great” and they were spending too much on incentives to attract buyers.

This caused a major rethink and a massive investment that would transform the brand. Part of this was driven by a plan to have Cadillac go electric-only and this necessitated a slew of new models including the Optiq, Lyriq, Vistiq, Escalade IQ, and Celestiq.

While that plan was ultimately abandoned, Cadillac has a lot of new product and roughly 25% of sales now come from EVs. The company also noted the Optiq, Lyriq, and Vistiq are conquest kings as more than 70% of buyers are new to the brand.

That’s good news, but a majority of sales still come from ICE-powered vehicles. This is a problem as the XT4 and XT6 are toast, while the XT5 is a dinosaur. However, the company is working to address that as Roth recently told dealers about the next-generation XT5.

The redesigned crossover will be launched in the second-half of 2027 and is expected to echo its Chinese counterpart. However, the US-spec model will be made in Tennessee and could use a turbocharged 2.5-liter four-cylinder that develops 328 hp (245 kW / 333 PS).

According to the latest American Customer Satisfaction Index Automobile Study, Americans are becoming less satisfied with their vehicles. The overall satisfaction index dropped one point this year to 79.

Mainstream brands held steady at 79, while luxury brands slipped a point as they fell to 80. The biggest drop came from smaller brands, which are grouped into an “others” category, as they plunged 9% to 74.

More: New Car Owners Overwhelmed By Modern Technology

Jumping into specifics, Subaru was deemed the most satisfying brand with a score of 85. It was followed by Mazda and Toyota in second with 82, while Buick, GMC, and Honda tied for third at 81.

Stellantis had a dismal showing as Chrysler, Dodge, Jeep and Ram all fell. In fact, all four brands found themselves at the bottom of the list with Chrysler and Ram tied for dead last at 69.

2025 American Customer Satisfaction Index For Mainstream Brands

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Interestingly, satisfaction with most vehicle related components and experiences was largely unchanged. However, there were drops related to technology and safety. The latest study also introduced two new categories – expected future resale or trade-in value and driving distance on a full charge or full tank of gas – and consumers weren’t exactly thrilled with either, especially for EVs.

On the luxury side of the equation, Lexus was top dog with a score of 87. They were followed by Mercedes (82) as well as Cadillac and Tesla, which tied for third at 81. BMW finished last with a score of 75 and they dropped four points from 2024.

2025 American Customer Satisfaction Index For Luxury Brands

ACSI

Luxury buyers were less satisfied with a number of things including driving performance, exteriors, interiors, and technology. There were also drops in safety and dependability.

Aside from the mainstream versus luxury divide, people were less satisfied with hybrids and EVs. Hybrids fell two points to 80, while electric vehicles dropped four points to fall to 73. This stands in contrast to gas-powered models, which held steady with a satisfaction index of 80.

The American Customer Satisfaction Index noted that with 22% of borrowers opting for 84-month loans, there will likely be an increased emphasis on reliability and dependability as consumers are holding onto their vehicles for longer. Ram spotted this shift awhile ago and they recently launched a new 10-year/100,000-mile limited powertrain warranty.

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