An Ohio battery planned owned by General Motors that President Donald Trump promised to save just confirmed they will be cutting 550 jobs and laying off another 850 employees, Newsweekreports.
The cuts come amid a slump in demand for electric vehicles. The plant in Lordstown, Ohio is a joint venture with Ultium Cells, which is in turn a joint venture between General Motors and LG Energy Solution which mass-produces battery cells for electric vehicles.
“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” the company said in a statement, saying it “remains committed to our U.S. manufacturing footprint.”
Newsweek notes that the recent elimination of the $7,500 consumer tax credits implemented during Joe Biden’s presidency as part of the Inflation Reduction Act has significantly impacted demand for electric vehicles, forcing companies to reassess production plans while considering further reductions in their workforce and facility footprint.
Trump held a 2017 rally near the Lordstown facility, promising residents that jobs would soon be returning to the region following years of decline.
“They’re all coming back. They’re coming back,” Trump told the crowd. “Don’t move. Don’t sell your house.”
After GM announced the closure of the plant in 2018 as it transitioned toward more fuel-efficient vehicles, Trump brushed it off, telling Fox News, “It doesn’t really matter because Ohio is under my leadership from a national standpoint."
Industry insiders are reeling from the Lordstown layoffs.
“Today, we received some devastating news that weighs heavily in our hearts and our community. This is an incredibly challenging time for our local union and our membership, especially given the painful history of our former assembly plant shutting its doors," said George Goranitis, local chapter president of the United Auto Workers union.