General Motors has shut down Factory Zero until Nov. 24 as the Detroit automaker eases back on electric vehicle production. After a temporary return to work, about 1,200 workers will be placed on indefinite layoff, the company confirmed Oct. 29.
The Detroit-Hamtramck plant already had 280 employees on layoff after a series of production cuts this year. GM shut down first- and second-shift production temporarily beginning Sept. 2 and extended and adjusted those layoffs throughout the fall.
That layoff had been extended to the end of the year, but now, all shifts will be laid off until Nov. 24, which impacts 3,200 workers. After Nov. 24, about 3,200 people will return through Jan. 5 to operate both shifts and will be eligible for holiday pay. And after Jan. 5, about 1,200 workers are expected to remain on indefinite layoff.
The automaker did not define what indefinite status means in terms of permanency, but said the moves are part of the strategy outlined Oct. 14 in an 8-K filing that said unused EV production equipment and related expenses cost the automaker $1.6 billion.
GM also confirmed hundreds will be laid off at its Ultium battery plants in Ohio and Tennessee.
Factory Zero employs about 4,000 people, the company said in August.
GM said 800 employees are not being counted at this time because some may have left the company, a portion could be on leave and others were transferred to other plants in GM’s network.
“In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity,” said GM spokesman Kevin Kelly. “Despite these changes, GM remains committed to our U.S. manufacturing footprint, and we believe our investments and dedication to flexible operations will make GM more resilient and capable of leading through change.”
The move comes just days after GM laid off more than 200 employees at its Warren Technical Center and 300 jobs at Georgia IT Innovation Center.
Factory Zero produces the GMC Hummer EV pickup and SUV and the Sierra EV truck, Chevrolet Silverado EV truck and Cadillac Escalade IQ EV SUV.
The moves will also impact two other locations that provide electric vehicle production support to Factory Zero, GM also confirmed Oct. 29. GM’s Pontiac Metal Center is temporarily laying off 45 employees, while New York’s Rochester Operations that produce battery cooling lines is laying off 74 people.
Ultium layoffs
As part of the reduction in electric vehicle production, fewer batteries will be needed.
GM said both Ultium Cells facilities in Warren, Ohio, and in Spring Hill, Tennessee, will go down starting Jan. 5 through mid-2026. Ultium Cells is the joint venture between the automaker and South Korean LG Energy Solution.
About 700 employees in Spring Hill and 850 employees in Warren, Ohio, will be under temporary layoff from the changes. However, approximately 550 employees in Warren, Ohio, will be under indefinite layoff.
“Impacted employees may be eligible to continue receiving a significant portion of their regular wages or salary, plus benefits. We anticipate resuming operations cell production at both sites by mid-2026,” Kelly, of GM, also said. “During the temporary pause Ultium Cells plans to make upgrades to both facilities to provide greater flexibility. Ultium Cells will continue to evaluate and adapt production plans based on evolving market needs.”
Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@freepress.com.
This article originally appeared on Detroit Free Press: GM temporarily idles Factory Zero as automaker braces for slower EV sales
Reporting by Jackie Charniga, Detroit Free Press / Detroit Free Press
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