by Temporary Shutdown of GM’s Factory Zero
General Motors has announced the suspension of operations at its flagship electric vehicle plant, Factory Zero, in Detroit. Production at the site was halted on March 16, with a restart planned only for April 13, meaning an almost month-long stoppage.
This decision will lead to the temporary layoff of approximately 1,300 workers. For the plant’s workforce, this is not the first blow: back in January, production was cut by almost half due to a switch to a single-shift work schedule, which at that time resulted in the indefinite suspension of 1,200 people.
Declining Demand for Electric Vehicles
The Factory Zero plant assembles models such as the Chevrolet Silverado EV and the Hummer EV. The sharp drop in sales of these vehicles is linked to the cancellation of the US federal $7,500 electric vehicle tax credit.
Sales statistics for the last quarter of 2025 show a contradictory picture for the Chevrolet Silverado EV: 1,896 units were sold, which is 12.9% less than in the same period of 2024. However, total sales for the entire year of 2025 amounted to 11,275 vehicles, showing an increase of 51.8% compared to the previous year.
Crisis of the GMC Hummer EV Model
The situation with the GMC Hummer EV is significantly more critical. In the fourth quarter of 2025, sales of this model fell by almost 50% – from 5,091 to 2,555 units. The negative trend continued into early 2026: only 1,653 vehicles were sold in the first quarter, which is 52.5% less than in the same period last year.
The only bright spot for the plant can be considered the GMC Sierra EV model, whose sales in the first quarter of 2026 slightly increased – to 1,288 units compared to 1,249 a year earlier.
Change in General Motors’ Strategy
In response to market challenges, General Motors announced a large-scale revision of its electric ambitions. The company confirmed that it will take on a $7.6 billion obligation related to cost-cutting in EV development.
GM CEO Mary Barra continues to call electric vehicles the company’s “endgame.”
However, for now, the company is making adjustments to its strategy. Among them is the development of several plug-in hybrid models, details about which remain unknown for now. Simultaneously, GM is ramping up production of its largest ICE-powered SUVs, such as the Chevrolet Silverado 2500/3500 and GMC Sierra 2500/3500.
The temporary closure of Factory Zero is happening against the backdrop of a general rethinking of the electric future by automakers. Many of them are facing the reality that the transition to electric vehicles is happening slower than expected, forcing them to seek more balanced and flexible approaches. This situation also highlights how important government incentives and support remain for stimulating demand, and how sudden policy changes can instantly impact the market. The future of the plant and its workers now depends on whether GM can adapt its products and business model to the new realities, where buyers have become more demanding and competition – fiercer.
