EV Demand Slowdown Forces Production Cuts at GM Plants
General Motors has temporarily laid off approximately 700 workers across two of its major electric vehicle production facilities in the United States and Canada. The automaker cited weakening demand for electric vehicles as the primary reason behind the decision, marking another setback in the EV transition for North America’s legacy carmakers.
The affected workers include around 200 employees from GM’s Factory Zero in Detroit, Michigan, and roughly 500 from the CAMI Assembly plant in Ingersoll, Ontario.
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Factory Zero in Detroit Pauses Production of Flagship EV Models
Factory Zero, located in Detroit, is responsible for manufacturing some of GM’s most high-profile electric vehicles, including the Chevrolet Silverado EV, GMC Sierra EV, the Hummer EV SUV and pickup, and the upcoming all-electric Cadillac Escalade IQ.
Despite its significant role in GM’s electrification strategy, the plant will see a temporary reduction in workforce as demand cools. According to GM spokesperson Kevin Kelly, the layoffs are part of a production realignment strategy.
“Factory Zero will adjust production to align with market dynamics,” Kelly told The Detroit News. He added that impacted employees will be placed on temporary layoff status and may qualify for subpay and benefits as outlined in the national contract between GM and the United Auto Workers (UAW).
The plant employs approximately 4,500 workers, according to GM’s official website.
CAMI Plant in Ontario Hit by Drop in Demand for BrightDrop Vans
In Ontario, GM’s CAMI Assembly facility is also feeling the effects of declining electric vehicle sales. The plant specializes in building BrightDrop electric delivery vans—a commercial EV brand GM launched to cater to logistics and last-mile delivery companies.
GM confirmed that it will temporarily lay off about 500 employees at CAMI due to a softening in market demand. A company spokesperson told the CBC that the decision was necessary to balance vehicle inventory and align production with real-time sales trends.
“CAMI is making operational and employment adjustments to balance inventory and align production schedules with current demand,” GM said in a statement. “GM remains committed to the future of BrightDrop and the CAMI plant and will support employees through the transition.”
The layoffs at CAMI are scheduled to begin immediately, with workers off the job for three weeks. Production will briefly resume for two weeks in May before the plant enters a more extended 20-week shutdown for retooling.
Preparing for the Next Generation of Commercial EVs
GM plans to use the upcoming downtime at CAMI to retool the plant for future production. The facility is being prepared to produce the 2026 model year of commercial electric vehicles. However, it remains unclear whether all 500 laid-off workers will be rehired once production resumes at full scale.
This move underscores GM’s long-term commitment to EV manufacturing, even as the short-term demand falters. The company has not announced a specific timeline for the retooling project’s completion.
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Stellantis Also Impacted by Industry-Wide Layoffs and Tariffs
The layoffs at GM follow similar actions by competitor Stellantis, which temporarily laid off about 900 workers across facilities in Michigan and Indiana earlier this month. The automaker attributed the decision to ongoing production halts at plants in Windsor, Ontario, and Toluca, Mexico—interruptions linked to tariffs imposed by the U.S. government on April 2.
Stellantis’ Windsor facility is expected to resume production around April 21, while the Toluca plant in Mexico is set to restart operations sometime in May. However, there is no confirmed return-to-work date for employees laid off at U.S. facilities.
EV Industry Faces Growing Pains Amid Transition to Electrification
The recent wave of layoffs at GM and Stellantis reflects broader challenges within the electric vehicle industry. As consumer demand softens and supply chains adjust, automakers are being forced to slow their transition timelines and recalibrate production targets.
Despite setbacks, both GM and Stellantis maintain that they are committed to electrification in the long term. For now, however, hundreds of workers must navigate temporary unemployment as the industry adapts to changing market realities.