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General Motors (GM) has announced the temporary layoff of nearly 200 employees at its Factory Zero plant in US' Detroit, effective April 14. The move is part of a broader production adjustment aimed at aligning output with current market conditions for electric vehicles (EVs). GM clarified that these layoffs are not related to recent automotive tariffs, but are instead a response to evolving market dynamics and demand trends in the electric vehicle sector. The company told Reuters, "Factory ZERO will adjust production to align with market dynamics," emphasising that the decision is a strategic realignment rather than a reaction to external trade policies.

Affected GM employees may be eligible for subpay and benefits under the terms of the GM-UAW national contract. While the company has not provided a timeline for when the laid-off workers might return, GM remains committed to its long-term goal of becoming an all-electric automaker by 2035 and continues to invest in battery technology and new EV platforms.

What is Factory Zero?

Factory Zero, formerly known as the Detroit-Hamtramck Assembly Center, is GM’s flagship all-electric manufacturing facility. It employs over 4,500 workers and produces high-profile EVs such as the Chevrolet Silverado EV, GMC Sierra EV, Hummer EV (pickup and SUV), and the Cadillac Escalade IQ. The plant is a cornerstone of GM’s multi-brand EV strategy and represents a significant investment in the company’s push toward an all-electric future.