GM Slows Production Of Large EVs
General Motors is scaling back production of its largest electric vehicles, pausing two shifts at Detroit’s Factory Zero plant and temporarily laying off 160 employees.
Key Points
- GM will pause first- and second-shift production of the GMC Hummer EV and Cadillac Escalade IQ at Factory Zero until October 6, affecting 160 workers.
- The move follows earlier layoffs of 200 employees tied to slowing sales of GM’s largest EVs, while smaller models like the Chevrolet Blazer and Equinox EV are selling more strongly.
- Industry-wide, demand for electric pickups remains soft, with just 35,000 sold in the U.S. in the first half of 2025 compared to 1.6 million gas-powered trucks.
The play will affect the GMC Hummer EV and the new Cadillac Escalade IQ, both of which will be produced in reduced numbers between Labor Day and October 6.
A GM spokesperson confirmed the decision to the Detroit Free Press, positioning the move as a routine adjustment to match production output with market demand. “Factory Zero is making temporary adjustments to production to align to market dynamics,” the company said, noting that employees will be placed on temporary layoff status with potential access to subpay and benefits.
It's the second time this year GM's EV hub has seen a workforce reduction. In April, GM announced temporary layoffs for 200 employees tied to slowing sales of the Hummer EV, Sierra EV, Silverado EV, and Escalade IQ.
The models were intended to showcase GM’s leadership in the large EV space, but they’ve struggled to gain traction compared to smaller, more affordable EVs from the company—like the Chevrolet Blazer and Equinox.
Large electric pickups and SUVs, despite their immense power and luxury features, have yet to catch on in the U.S. in the way automakers once predicted.
Ford's CEO Jim Farley admitted earlier this year that large EVs are a struggle because, in order to replicate the performance of their combustion-powered counterparts, the batteries grow so large that the economics don't make sense.
"For larger retail electric [vehicles], the economics are unresolvable. These customers have very demanding use cases for an electric vehicle," Farley said in February.
GM isn’t alone in facing this reality. Ford’s F-150 Lightning and Tesla’s Cybertruck have also cooled in demand. Market research from AutoForecast Solutions shows that only about 35,000 electric pickups were sold in America during the first half of 2025—a 4 percent drop year-over-year. Yet, more than 1.6 million gas-powered full-size pickups found new homes in the same period.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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Cadillac Escalade 165,000 dollars. Are you going to live in it too. What a joke
Barra cancels the Cruze, doesn't have a ready replacement for the hot selling Chevy Bolt yet spends money on producing these ridiculous things.
Give her a raise.