GM has halted Hummer EV and Escalade IQ production

GM is pressing pause on two of its biggest electric SUVs, the Hummer EV and Escalade IQ, as it temporarily halts output at its Factory Zero assembly plant.

The move will see production at the Detroit facility stop after Labor Day, beginning September 2, and remain idle until October 6.

Both first- and second-shift operations will be impacted, with around 360 employees directly affected by the changes.

The temporary shutdown underscores the challenges automakers face in balancing EV demand with production capacity.

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Factory Zero produces the Hummer EV and Cadillac Escalade IQ

According to a memo obtained by the Detroit Free Press, GM confirmed that production of the GMC Hummer EV and Cadillac Escalade IQ would be put on hold during this adjustment period.

In addition, a second-shift layoff that was already in place has now been extended until October 6.

Factory Zero, which employs about 4,000 people overall, will keep a significant portion of its workforce idle while the automaker reassesses market conditions and inventory levels.

“Factory Zero is making temporary adjustments to production to align to market dynamics,” GM spokesman Kevin Kelly said in an emailed statement.

He emphasized that the company routinely updates production schedules to ensure vehicle output matches demand.

The pause may seem sudden, but it follows a similar move earlier this year, when GM announced on April 10 that it was cutting approximately 200 jobs at the same plant.

A similar reason was given: slowing demand for its flagship EVs, including the Hummer EV pickup and SUV, Sierra EV, Silverado EV, and Escalade IQ.

This latest adjustment impacts an additional 160 employees, bringing the total number of affected workers this year to over 360.

Those employees will be placed on temporary layoff status and may qualify for unemployment pay and benefits under the GM-UAW national contract.

Demand for EVs has been volatile

Factory Zero is central to GM’s electric vehicle ambitions.

The facility was retooled as part of the automaker’s massive EV push and is responsible for some of the company’s most high-profile electric models.

However, demand for large, luxury EVs like the Hummer EV and Escalade IQ has proven volatile, as consumers weigh high prices and charging infrastructure concerns.

By halting production temporarily, GM aims to avoid oversupplying dealers with vehicles that could sit unsold on lots.

The company insists this is a routine adjustment, not a sign of retreat from its EV goals.

After all, the company’s engineers continue to make breakthroughs in EV technology, like how they managed to get a record-breaking 1,059 miles out of the Silverado EV from a single charge.

However, GM’s ‘green’ EV plant, the Orion Assembly plant in Michigan, recently started making gas-powered trucks and SUVs, hinting that the company may be forced to pause its EV dreams for the time being.

In any case, let’s hope GM doesn’t give up permanently on EVs.

After all, GM is responsible for the incredibly cool crab-walking Hummer EV.

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