GM's Factory Zero Is Going Dark – Which Car Models Will Be Affected?
As uncertainty continues to dog many quarters of the automobile industry, the caginess of the market is being felt by many manufacturers. That includes the major multi-brand owner, General Motors, which announced on October 29, 2025, some significant changes to operations at several U.S. production facilities, and the layoff of thousands of employees in Michigan, Tennessee, and Ohio. Among those facilities is GM's Factory ZERO, which, for the past several years, has served as the manufacturer's central hub for the assembly of several of the company's full-size electric vehicles.
Factory ZERO had already endured a round of 280 layoffs as recently as September, with GM pulling the plug on several production shifts at that time. It seems those layoffs — initially dubbed temporary by the company — were only the beginning, and the automaker is now set to lay off an additional 1,200 employees from its EV epicenter. The shutdown will affect production of popular models like the Chevrolet Silverado EV and GMC Sierra EV, as well as both the pickup and SUV versions of the GMC HUMMER EV, and the SlashGear-approved Cadillac ESCALADE IQ.
GM (via NBC News) has claimed that the moves were made, "In response to slower near-term EV adoption and an evolving regulatory environment," later adding that, "GM remains committed to our U.S. manufacturing footprint," despite the closures. However, in a seemingly related move, GM also announced the elimination of an additional 550 jobs at its Ultium battery cell facility in Ohio.
Factory ZERO will open again
Nonetheless, the closure of the Factory ZERO plant is a stunning turn of events, as GM — like many other major manufacturers — had begun to see the EV market as the future of the auto industry. That future now looks decidedly murky. As for General Motors, the company isn't just playing the spin game in their reasoning behind the closures, as the EV market overall has cooled considerably under the current U.S. administration. The fall-off is in no small part due to the administration's decision to end a lucrative program that entitled those who purchased electric vehicles to a $7,500 tax credit.
The end of that incentive program was directly cited by GM in an October 14 filing regarding a $1.6 billion loss, much of which was attributed to shortcomings in its EV program. In the current climate, GM and other major automakers are anticipating even further slowing of growth in the EV sector. While production on the noted full-sized EVs is currently on ice, General Motors claims production will ramp back up at Factory ZERO on November 24, 2025.
However, the reprieve will only be temporary, as the layoffs are slated to resume after the holiday season. Per GM, as of January 5, 2026, the layoffs will become indefinite. GM will, of course, continue to sell the noted EV models that have already been made, as well as those that will soon make their way into showrooms across the globe. At present, it's unclear if, or when GM might resume production at Factory ZERO.