GM Pauses EV Production, Lays Off 1,300 Workers

Factory Zero Slows Down

The electric vehicle market has softened considerably since last year. As a result, automakers have been forced to adjust their electrified lineups, and General Motors is no exception. According to Automotive News, GM has once again idled production at its Michigan EV plant, Factory Zero, amid slower-than-expected demand.

At the same time, GM is ramping up heavy-duty pickup truck production at its Flint Assembly plant, located north of Factory Zero, to meet rising demand. The move also comes amid a broader policy shift, as the current administration has rolled back EV incentives and moved to relax emissions-related rules that had pushed the industry toward electrification.

Adjusting the Assembly Line

Factory Zero temporarily laid off 1,300 workers on March 16, with employees expected to return on April 13. This follows a previous idling late last year, as well as a reduction to a single shift in January 2026. The production halt affects GM's large all-electric models, including the GMC Hummer EV, Chevrolet Silverado EV and Sierra EV, and the Cadillac Escalade IQ.

The smaller models are produced elsewhere, including GM’s best-selling all-electric vehicle in 2025, the Equinox EV, which is built at the Ramos Arizpe plant in Mexico.

Direct rival Ford has also adjusted its EV lineup, including plans to replace the all-electric F-150 Lightning with a range-extended model. Although it is still driven solely by electric motors, the setup uses a gasoline engine as a generator to supply power, allowing it to be refueled at a conventional gas station. Stellantis, meanwhile, has acknowledged that it overestimated the pace of the EV transition and is now shifting back toward hybrids and V8s, with the Ram 1500 TRX returning with a Hemi V8 now rated at 777 horsepower.

The Long-Term Bet Remains

However, despite these changes favoring combustion-powered vehicles, UAW Local 22 President James Cotton remains optimistic about EVs, arguing that they “are the future.” He also suggested that rising gas prices could help revive demand for electric vehicles. GM finance chief Paul Jacobson said it typically takes about six months of sustained high gas prices before buyers begin considering more fuel-efficient vehicles.

For now, the production priority goes to GM’s heavy-duty truck lineup, including the Chevrolet Silverado 2500 and 3500, while its EV portfolio takes a step back.

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