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Back to Podcast EpisodesGM slows production of two of its most expensive EVs
'Market Dynamics' Are The Cause
General Motors is reducing production of two of its biggest and most expensive electric vehicles at Factory Zero, the automaker's dedicated EV assembly plant in Hamtramck, Michigan, adjacent to Detroit. The first and second shifts for the GMC Hummer EV and Cadillac Escalade IQ will be idled between Labor Day and October 6, reports the Detroit Free Press.
"Factory Zero is making temporary adjustments to production to align to market dynamics," a GM spokesperson said in an emailed statement to the paper. "General Motors updates schedules as part of our standard process of aligning production to manage vehicle inventory."
Slowing Demand For Big EVs
Cadillac
The partial shutdown affects 160 employees out of the approximately 4,000 employed at the factory. They will be placed on temporary layoff and may be eligible for subpar and benefits in accordance with GM's current contract with the United Auto Workers (UAW) union, the automaker told The Detroit Free Press.
These temporary layoffs come after another cut announced in April that affects 200 employees at Factory Zero. GM attributed that one to slowing sales of the Hummer EV SUV and pickup, the Escalade IQ, and the related Chevrolet Silverado EV and GMC Sierra EV pickups.
With these EVs, GM has tried to replicate its success with full-size trucks and SUVs, touting quick acceleration and high-tech features like four-wheel steering as improvements over the gasoline versions, while offering upwards of 400 miles of range. But the enormous dual-layer battery packs needed to achieve that range add weight and cost, while making charging more inconvenient when they finally run out.
More Demand For Affordable Models
GMC
GM reported that Hummer EV sales were up 73% in the first half of 2025 compared to the same period in 2024, but this seems to be exception rather than the rule. The Escalade IQ was handily outsold by the less-expensive Optiq and Lyriq in the first half, while the Silverado EV and Sierra EV pickups were among the slowest-selling EVs in GM's lineup.
Instead of expensive trucks and SUVs, GM's bestselling EV has also been its least expensive. In July, the Chevy Equinox EV accounted for about 45% of the automaker's EV sales and became the bestselling non-Tesla EV in the United States, according to GM. While the automaker sold just under 8,000 Hummers in the first half of the year, it sold about 36,000 Equinox EVs. That speaks to greater demand for affordable models, especially as federal incentives disappear.
Published on 1 day, 16 hours ago