GM Delays Planned EV Plant Conversion as UAW Strike Continues

General Motors (GM) pushed back to 2025 plans to convert a Michigan plant to electric vehicle production as the United Auto Workers (UAW) strike continues against it and the other Big Three automakers, Ford (F) and Stellantis (STLA).

GM said in a statement Tuesday that it will “retime the conversion of its Orion Assembly plant to EV truck production to late 2025 to better manage capital investment while aligning with evolving EV demand," noting that it had “identified engineering improvements that we will implement to increase the profitability of our products.”

The automaker previously had said that the Orion Assembly conversion was an important step in the company’s “drive to become the EV market leader in North America.”

Last month, Ford stopped construction of its EV battery plant citing concerns about its ability to be competitive. In response, UAW President Shawn Fain said that the union was "simply asking for a just transition to electric vehicles and Ford is instead doubling down on their race to the bottom."

The EV transition has been a contentious issue throughout the UAW strike. The strike, which started on Sept. 15, has cost an estimated $7.7 billion in economic losses in its first four weeks alone, according to the Anderson Economic Group. 

Last week, GM agreed that electric battery manufacturing workers would be included in the UAW national agreement, a major concession to the union.

Wedbush Securities analysts have raised concerns that the UAW dispute could make the Big Three unable to effectively compete in the EV market, to the advantage of Elon Musk’s Tesla (TSLA).