General Motors has temporarily halted production at its Factory Zero facility in Hamtramck, Michigan, resulting in the layoff of 1,300 workers. The plant, which manufactures electric vehicles including the Cadillac Escalade IQ, Chevrolet Silverado EV, GMC Sierra EV, and GMC Hummer EV, will remain idle until April 13.
The move comes as demand for electric trucks and SUVs falters in the U.S. market. Analysts attribute the decline to range anxiety, towing limitations, and the elimination of federal EV incentives. GM's struggles mirror broader industry trends; Ford canceled its F-150 Lightning pickup truck in December, and Ram has yet to launch a battery-powered truck.
This latest pause in production follows GM's October decision to permanently lay off 1,700 workers at EV and battery plants in Michigan and Tennessee.
Factory Zero returned to a single shift after a one-month suspension late last year, but continued weak sales have forced another shutdown. The layoffs underscore the challenges automakers face in transitioning American consumers to electric vehicles, particularly in the truck segment.
As domestic automakers recalibrate their EV strategies, the impact on American workers remains a critical concern. GM's decision highlights the risks of overestimating consumer appetite for electric vehicles, particularly in the absence of robust federal support.