GM idles Factory Zero, lays off 1,300 workers as electric truck demand falters

General Motors has idled its flagship electric vehicle plant and laid off hundreds of workers, a stark signal of the cratering demand for electric trucks and SUVs in the US market. The company's Factory Zero in Hamtramck, Michigan—the assembly line for the Cadillac Escalade IQ, Chevrolet Silverado EV, GMC Sierra EV, and GMC Hummer EV—was shut down two weeks ago, sending 1,300 workers home on temporary layoff. Production is not scheduled to resume until April 13, halting the output of GM's most prominent electric models.

The move is a direct response to automakers scaling back overly optimistic production plans as the transition to electric vehicles hits significant roadblocks. A combination of consumer range and towing anxiety, the imposition of new tariffs, and the abolishment of federal EV incentives has stalled the domestic market, particularly for large electric trucks. GM's attempt to transition its traditional full-size truck customer base into all-electric versions has stumbled, leaving its most advanced EV factory silent.

This is not an isolated workforce reduction for GM. In late October last year, the automaker permanently laid off 1,700 workers at EV and battery plants in Michigan and Tennessee. The consecutive layoffs and production pauses point to a broader and more painful recalibration within the industry, as manufacturers confront a reality where consumer adoption is not keeping pace with their aggressive, capital-intensive electrification strategies.