Detroit, MI – April 2025 — General Motors (GM) has announced temporary layoffs affecting approximately 200 employees at its Detroit-Hamtramck Assembly Center, commonly known as Factory Zero. The decision comes amid softening consumer demand for electric vehicles (EVs), despite GM’s year-over-year EV sales nearly doubling in Q1 2025.
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Slowing EV Demand Forces Production Adjustment
Factory Zero currently manufactures some of GM’s flagship electric models, including:
- GMC Hummer EV (Pickup and SUV)
- GMC Sierra EV
- Chevrolet Silverado EV
- Cadillac Escalade IQ
GM spokesperson Kevin Kelly confirmed that the layoffs are not related to recent tariff discussions. Instead, the company is responding to evolving market conditions by temporarily reducing output to better match consumer demand.
Market Challenges Amid Policy Uncertainty
While GM has solidified its position as the second-largest EV manufacturer in the U.S.—trailing only Tesla—the industry overall is grappling with slower-than-expected adoption rates. Contributing factors include:
- Potential policy rollbacks: The Trump administration is pushing to eliminate federal EV mandates, halt funding for charging infrastructure, and repeal tax incentives.
- Rising production costs: Although GM is localizing its EV supply chain, foreign-sourced battery components remain a factor, and new auto tariffs could drive costs even higher.
Layoffs and Support for Affected Employees
The temporary reduction in workforce is expected to help GM realign its production strategy with current market realities. Factory Zero currently employs over 4,500 workers. Affected employees will receive subpay and continued benefits through the existing GM-UAW labor agreement.
GM’s Long-Term EV Commitment
Despite short-term adjustments, GM remains committed to expanding its electric vehicle portfolio and transitioning toward a zero-emissions future. The company is actively investing in domestic battery production and EV technology to reduce reliance on foreign components and improve cost efficiency.
