GM idles Factory Zero again, lays off 1,300 EV workers for a month

General Motors has shut down production at Factory Zero in Detroit for the second time in less than three months, temporarily laying off 1,300 workers. The plant won’t restart until mid-April.

The idling, which began on March 16, marks the latest in a string of production cuts at the facility GM once positioned as the flagship of its electric vehicle future — a $2.2 billion showcase that has become a symbol of the company’s rapid EV retreat.

Factory Zero’s slow collapse

GM spokesman Kevin Kelly confirmed the shutdown, stating that “Factory Zero will temporarily adjust production to align EV production with market demand.” Workers are expected to return on April 13.

The plant produces the GMC Hummer EV pickup and SUV, the Chevrolet Silverado EV, the GMC Sierra EV, and the Cadillac Escalade IQ — GM’s most expensive and least popular electric vehicles. Laid-off workers may be eligible for supplemental pay and benefits under the GM-UAW national contract.

This is not a one-off adjustment. Factory Zero has been in near-constant turmoil since mid-2025. GM slashed one of two shifts and permanently laid off 1,200 workers in October 2025 as part of a broader 3,300-job cut across its EV operations. The plant then idled from late October through late November 2025, followed by additional downtime through the end of the year.

When production restarted in January 2026, it was on a single shift — and now even that reduced output is more than the market can absorb.

A $2.2 billion investment going dark

GM poured $2.2 billion into converting the former Detroit-Hamtramck Assembly plant into Factory Zero, an EV-only facility that was supposed to anchor the company’s “all-electric future.” CEO Mary Barra repeatedly pointed to Factory Zero as proof of GM’s EV commitment.

The reality has been brutal. GM warned in January that it expects “significantly” lower EV volume in 2026 and recorded $7.6 billion in EV-related charges during 2025 — including a $6 billion writedown tied to scrapping EV production plans and canceling battery supply contracts.

The company’s EV sales tell the story in stark terms. GM sold nearly 170,000 EVs in the US in 2025, up 48% from 2024. But that momentum collapsed in Q4 2025 after the Trump administration ended the $7,500 federal EV tax credit on September 30. Fourth-quarter EV sales plunged 43% to just 25,219 units.

The demand problem is compounded by GM’s product mix at Factory Zero. The Hummer EV starts above $80,000. The Escalade IQ starts above $130,000. These are niche luxury products, not the mass-market EVs that drive volume. Meanwhile, GM’s actual volume seller — the Chevy Equinox EV starting around $35,000 — is built at a different plant entirely.

The policy problem

The Trump administration’s rollback of both consumer EV incentives and tailpipe emissions standards has created a double blow for automakers. The tax credit elimination removed a direct purchase incentive, while relaxed emissions rules reduced the regulatory pressure that had been pushing manufacturers to sell more EVs.

GM has responded by pivoting capacity away from EVs entirely. The company converted a planned Michigan EV facility to produce full-size ICE pickups and SUVs instead, and paused battery production at two Ultium joint-venture plants.

The irony is that GM was building real EV momentum before the policy reversal. That 48% sales growth in 2025 showed the product lineup was gaining traction. GM scrapped its $7,500 EV discount program in October after the federal credit ended, further removing purchase incentives from the equation.

Electrek’s Take

That’s what happens when you build your business model around the whims of American politics. GM spent $2.2 billion to build the factory, recorded $6 billion in writedowns tied to its EV pullback, and now can’t even keep one shift running continuously.

The problem isn’t that people don’t want electric vehicles — GM proved that with 48% EV sales growth in 2025. The problem is that GM bet Factory Zero on the wrong EVs. A $100,000+ Hummer EV and a $130,000+ Escalade IQ were never going to sustain a factory at meaningful volume, especially without tax credits propping up luxury EV purchases.

We’ve said this before: GM needed its Equinox EV moment at Factory Zero, not a lineup of six-figure trucks. The Equinox EV is selling well at its own plant. The Silverado EV at Factory Zero is closer to the right idea but still priced too high for mass adoption.

The bigger picture is even more concerning. GM is actively unwinding its EV investments while competitors, particularly Chinese automakers, continue scaling. Every month Factory Zero sits idle is a month GM falls further behind on the EV learning curve. You can restart a factory, but you can’t recapture lost manufacturing experience and cost optimization.