GM Idles Factory Zero Again as EV Demand Stays Soft

• GM temporarily halted Factory Zero output and laid off 1,300 workers until April 13.

• Detroit’s flagship EV plant has now faced multiple shutdowns and a shift reduction.

• Slower EV demand is colliding with GM’s renewed emphasis on combustion vehicle production.

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GM has once again temporarily idled production at its Factory Zero assembly plant in Detroit, pausing production of its biggest and most expensive EVs. This site was once promoted as the centrepiece of the automaker’s EV strategy, but the market isn’t that interested.

The latest shutdown affects the 1,300 employees still working at the plant. According to the United Auto Workers, the workers were placed on temporary layoff on March 16 and are expected to return on April 13. GM said the plant’s idling is intended to match production with current demand for EVs.

This is not the first interruption at Factory Zero. The Detroit facility was previously shut down from October 27 to November 24, and GM later reduced operations to a single shift in January.

Factory Zero carries symbolic weight for GM. The company invested a colossal US$2.2 billion to retool the former Detroit-Hamtramck Assembly plant, describing it in 2021 as a next-generation manufacturing site built around an all-electric future. At the time, the investment represented the largest single plant investment in GM’s history.

The factory assembles, or assembled some of GM’s most visible flagship battery-electric products, including the GMC Hummer EV pickup and SUV, Chevrolet Silverado EV, GMC Sierra EV, and Cadillac Escalade IQ. These vehicles sit at the very top of the pricing range and at the full-size end of the market. These vehicles are expensive, and given still-existing constraints on charging access, range anxiety, and other EV-related concerns, volume growth eludes them.

The latest downtime also highlights the contrast between GM’s EV manufacturing ambitions and its current production priorities. While Factory Zero slows again, the automaker is continuing work at Orion Assembly, about 50 km north of Detroit, where gasoline-powered pickup trucks and Cadillac Escalade SUVs are expected to be built.

Labour leaders have tied Factory Zero’s instability to far weaker-than-expected EV uptake and changes in U.S. policy. UAW Local 22 leadership has pointed to reduced federal support for EV adoption and a softer regulatory push on emissions as added pressure on demand. Meanwhile, UAW Local 5960 workers are currently happy.

Source: Automotive News