GM Lays Off 200 Workers At EV Plant And It’s Not Because Of Trump

- Factory Zero, which used to be the Detroit-Hamtramck plant, was renovated to build GM’s new EVs.
- In 2020, GM poured in $2.2 billion in it, the biggest single investment in a plant in its history.
- However, with demand for EVs not being as strong as expected, it now has to revise its plans.
The automotive industry is currently in a state of collective disorder. And while Donald Trump’s constantly evolving tariffs, which make the headlines daily as they have far-reaching consequences in whole countries and their economies, may play a huge role in that, it’s not the only one.
Electric vehicles, which were touted by almost everyone as dominating all major markets in the (very near) future, are definitely gaining ground with each passing year, just not at the rate most automakers were expecting. Excluding China and Norway, the rate of adoption by buyers is not as high as initially predicted, which has led many manufacturers to reverse their pledge to go all-electric and continue producing ICE-powered models in the interim.
More: GM Just Blinked After Trump’s Tariff War Escalated
Now, GM is about to temporarily lay off 200 out of its 4,500 workers at the all-electric Factory Zero plant in Detroit. As reported by US News, a company source explained that this move is not related to Trump’s tariffs but rather to the automaker adjusting its production to “align with market dynamics”.

For those among us who don’t speak corporate, this means that Factory Zero, which builds solely electric vehicles, specifically the Hummer EV SUV and pickup truck, the Chevrolet Silverado EV, the GMC Sierra EV, and the Cadillac Escalade IQ, needs to slow down for a while as demand for EVs is not as strong as GM anticipated.
Factory Zero used to be known as the Detroit-Hamtramck plant until 2020, when GM decided to turn it into a state of the art hub for manufacturing electric vehicles based on its Ultium platform. To that end, it poured in $2.2 billion which at the time, was, in the company’s own words, the “single largest investment in a plant in GM history”.
The plant’s grand opening took place on November 17, 2021, and then President Joe Biden was there to celebrate this milestone alongside General Motor‘s leadership and factory workers. “GM’s U.S. manufacturing expertise is key to achieving our all-electric future,” GM Chair and CEO Mary Barra said at the opening.“This is a monumental day for the entire GM team. We retooled Factory ZERO with the best, most advanced technology in the world to build the highest quality electric vehicles for our customers.”
Moreover, executive vice president of Global Manufacturing and Sustainability Gerald Johnson stated that “To meet our ambitious EV transition, GM’s North American EV vehicle assembly capacity will reach 20 percent by 2025, and then 50 percent by 2030”. Seems that this target turned out to be more ambitious than GM expected, but if it’s any consolation, the same is true for practically all major car manufacturers – except the Chinese.
