Workers at General Motors’ Factory Zero will get an extended Labor Day holiday, the company said, in order to make “temporary adjustments to production,” reflecting slowing demand for some of the automaker’s biggest battery-electric vehicles including the GMC Hummer and Chevrolet Silverado EV. More from Headlight.News.
Sales of the Chevrolet Silverado EV have failed to live up to GM’s expectations.
General Motor will temporarily halt much of its operations at Factory Zero EV plant, a move reflecting weakening demand for a variety of full-sized battery-electric vehicles produced at the facility which straddles the Detroit border with the suburb of Hamtramck.
Production was originally set to resume the day after Labor Day but the factory now will remain on idle until October 6, spokesman Kevin Kelly confirmed.
“Factory Zero is making temporary adjustments to production to align to market dynamics,” Kelly said in a statement.
What’s behind the shutdown
GM’s Factory Zero.
Originally opened in 1985 to build gas-powered Cadillacs, Factory Zero was intended to be a showcase of GM’s “Ultium” EV technology after going through $2.2 billion renovation. Reopened in 2021, it has since been building an assortment of all-electric models including the GMC Hummer EV pickup and SUV and Sierra EV truck, Chevrolet Silverado EV truck and Cadillac Escalade IQ EV SUV.
Initially after opening, GM expanded production plans. But sales have since fallen short of expectations, leading the automaker to reduce output of Hummer and Cadillac models on the first shift. Second-shift production is already on hold. GM cut 200 jobs at the plant on April 10.
The new plan will see GM partially idle the first shift, as well, on October 6. It currently expects to restart both shifts on October 6.
Market dynamics
The GMC Hummer EV.
“General Motors updates schedules as part of our standard process of aligning production to manage vehicle inventory,” Kelly’s statement explained.
And, right now, the market is simply demanding fewer EVs than GM had expected. That’s especially true in the full-size pickup and SUV segments – though sales of smaller all-electric models have been holding up – at least for now –according to industry data. GM, notably, has now surpassed Ford Motor Co. to be the second largest seller of EVs in the U.S. market, behind only Tesla.
Most industry analysts now forecast demand for all EVs will fall off after current federal EV tax credits are eliminated on September 31.
More EV News
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- Ford Reveals Plans for Affordable “Universal EV”
- Why Does the Air Force Want to Blow up 2 Tesla Cybertrucks?
Market share expected to tumble
Chevy will launch the next-gen Bolt as a 2027 model.
A study released earlier this month by AutoPacific, Inc. predicts the EV share of the U.S. new vehicle market will be flat for all of 2025, at about 8%. The research firm sharply revised an earlier forecast that saw the EV share reaching 25% by 2029. It now see that coming in at only around 11%.
Automakers are hoping they can reinvigorate the market by focusing on “affordable” products coming in at around $30,000 or less. That’s believed to be the target GM is shooting for when it launches a second-generation Chevrolet Bolt later this year.
Ford, meanwhile, announced plans to launch a new family of “Universal” EVs in 2027 with a “target price” of $30,000. To cut production costs, CEO Jim Farley announced this month, Ford is adopting an entirely new production system based on the use of multiple assembly lines running side-by-side until late in the manufacturing process.
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