General Motors (GM) will temporarily lay off approximately 200 workers at its Factory Zero electric vehicle plant in Detroit, as the automaker adjusts production in response to moderating demand for electric vehicles (EVs) in the United States.
The decision affects about 4% of the plant’s 4,500 employees and reflects shifting market dynamics, a GM spokesperson confirmed. “This move is not related to Trump’s tariffs but rather to the automaker adjusting its production to align with market dynamics,” the source told U.S. News.
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Factory Zero, formerly known as the Detroit-Hamtramck plant, was rebranded and retooled in 2020 as GM’s flagship EV manufacturing facility. The company invested $2.2 billion into the site to produce electric models based on its Ultium platform, including the GMC Hummer EV, Chevrolet Silverado EV, GMC Sierra EV, and the Cadillac Escalade IQ.
The layoffs highlight a broader trend within the automotive industry, where EV adoption outside of key markets such as China and Norway has lagged behind expectations. As a result, several automakers, including GM, have reconsidered their all-electric transition timelines.
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Factory Zero was officially inaugurated in November 2021 with U.S. President Joe Biden in attendance. At the opening, GM CEO Mary Barra said, “GM’s U.S. manufacturing expertise is key to achieving our all-electric future. This is a monumental day for the entire GM team.”
GM’s executive vice president of Global Manufacturing and Sustainability, Gerald Johnson, previously stated that the company aimed to make EVs account for 20% of its North American production capacity by 2025, growing to 50% by 2030. However, the latest layoffs suggest that those targets may require reassessment amid a slower-than-anticipated market shift toward electric vehicles.