GM Pauses EV Production at Factory Zero, Sparks Dealer Incentives

DETROIT, Sept. 2, 2025 - General Motors Co. (GM) has temporarily halted production of its flagship electric vehicles at its Factory Zero assembly plant in Detroit-Hamtramck, effective today, and dealers are preparing to offer incentives on remaining inventory.

Production of the GMC Hummer EV and Cadillac Escalade IQ will be suspended from Sept. 2 through Oct. 6, Michigan plant management confirmed. Approximately 360 workers-across both first and second shifts-have been placed on temporary layoff, in line with GM’s standard practice of adjusting schedules to align output with market demand.

The move underscores a broader recalibration of GM’s EV strategy, as demand for ultra-high-priced electric trucks and SUVs has lagged expectations. Earlier this year, GM recorded strong sales of more mainstream electric models, notably the Chevrolet Equinox EV, which posted record U.S. deliveries in July.

In anticipation of softened consumer interest in its premium EV offerings, GM dealers nationwide are poised to offer special pricing and lease incentives on Hummer EV and Escalade IQ units. Industry analysts suggest this is an opportune moment for buyers seeking deals on GM’s most capable electric utility vehicles.

GM spokesperson Kevin Kelly emphasized that the temporary shutdown is part of routine production management. “Factory Zero is making temporary adjustments to production to align with market dynamics,” Kelly said in a statement. “General Motors updates schedules as part of our standard process of aligning production to manage vehicle inventory.”

The Detroit-Hamtramck facility, rebranded as Factory Zero in 2021 as GM’s flagship electric-vehicle plant, has undergone multiple temporary layoffs this year amid shifting market conditions. Production of GM’s Silverado EV and Sierra EV models at other U.S. plants remains unaffected by this shutdown.

As GM navigates the transition to an all-electric lineup, the company has reaffirmed its commitment to balancing EV output with consumer demand, while dealers leverage the temporary pause to move high-end inventory through attractive promotions.