Dana closes Auburn Hills plant, lays off 200 amid post-subsidy EV downturn

Dana ￰0￱ closed its Auburn Hills plant in Michigan, laying off at atleast 200 employees due to a slump in electric vehicle demand in the ￰1￱ the expiration of the federal tax ￰2￱ ￰3￱ a sudden drop in EV orders, along with other major automakers, who face billions in losses due to reduced EV ￰4￱ Inc., the manufacturer of driveline and electrified propulsion systems, confirmed the closure of the Auburn Hills plant earlier this ￰5￱ 200 employees were affected, according to a notice delivered under the Worker Adjustment and Retraining Notification Act. Dana, however, confirmed that it will continue to operate the driveline manufacturing facility in Michigan, but not the affected ￰6￱ subsidy reversal fuels a slump in EV demand The closure of Dana ￰7￱ subsequent layoffs occurred after the expiration of federal tax credits on EVs on September ￰8￱ expiry of subsidies ended incentives worth $7,500 for new EVs and up to $4,000 for used ￰9￱ tax credit expiration resulted from the new policies rolled out by the Trump administration under the Big Beautiful Bill ￰10￱ manufacturer Dana ￰11￱ Auburn Hills plant, cites "lower demand" for EVs ￰12￱ — Anas Alhajji (@anasalhajji) October 22, 2025 The Dana market exit could only mark the beginning of several supply chain market exits as EV manufacturers scale back production ￰13￱ closure signals a challenging new chapter for the EV sector, which had initially experienced rapid growth, largely driven by government ￰14￱ sales surged in Q3, ahead of the subsidy expiration, with a 40.7% increase compared to the previous quarter and nearly 30% year-over-year ￰15￱ the rise, the surge proved short-lived as automakers continue to struggle to turn the business into a ￰16￱ automakers have cited high production costs, raw material shortages, and slower-than-expected demand from the ￰17￱ instance, Ford Motor ￰18￱ a $1.3 billion loss on its EV division in the second quarter and projected total annual losses of up to $5.5 billion for ￰19￱ Motors and Stellantis continue to incur more ￰20￱ Motors managed to more than double its EV sales in Q3, but this was largely attributed to investors rushing to take advantage of the soon-to-expire tax credit.

China’s BYD outpaces the ￰21￱ abroad The Biden administration’s subsidies and grants played an essential role for both EV buyers and manufacturers in jumpstarting the EV sector in the U. S. However, Trump’s policy reversal, which his administration argued would rebalance the automotive market and reduce federal spending, has resulted in losses for the ￰22￱ Motors recently revealed that it expects an impact of up to $1.6 billion in Q4 following the cutoff of ￰23￱ of now, profitability across the EV industry remains elusive, but some analysts note that policy shifts could turn things ￰24￱ slow demand wave could trigger restructuring across multiple EV firms and the entire supply chain in the ￰25￱ slow demand, Ford and GM have shown intentions to refine their production efficiency and shift resources to hybrid models to balance ￰26￱ the current state, it remains speculative whether the net-zero emission deadline will be met by ￰27￱ rival BYD, however, has performed well in Europe, providing ￰28￱ with ￰29￱ firm recorded an 880% sales surge last month, as reported by ￰30￱ automaker sold 11,271 electric vehicles, bringing the 2025 British sales to over 35,000 ￰31￱ far, Tesla has indicated its intention to offer more affordable models.

Still, it may be challenging to compete with BYD, which has already introduced other, more affordable models, particularly the SEAL U DM-i hybrid and the SEALION 7 electric ￰32￱ your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.