GM lays off 200 workers amid falling EV sales
- General Motors is laying off 200 workers at its all-electric Factory Zero in response to disappointing electric vehicle sales.
- The layoffs are temporary, allowing the company to adjust production to align with market demands.
- This announcement underscores the challenges facing GM as it attempts to push its electric vehicle strategy amid changing consumer preferences.
In the United States, General Motors announced on April 14, 2025, that it will temporarily lay off 200 employees at its all-electric Factory Zero in Detroit. This decision comes as the company seeks to realign its production with current market dynamics, particularly in response to disappointing electric vehicle (EV) sales that have not met industry expectations. Factory Zero, which employs over 4,500 workers, is viewed as a critical site for GM’s ambitious all-EV strategy, highlighting the company’s commitment to a future dominated by electric vehicles. Despite significant investments exceeding $2.5 billion into the plant, the company has recently adjusted its projected EV output for 2024 down from 300,000 units to 250,000 units. GM had previously aimed for a production capacity target of 1 million EVs in North America by the end of 2025, but the company refrained from reaffirming this goal in light of changing consumer demand. CEO Mary Barra indicated that challenges such as affordability, range anxiety, and insufficient charging infrastructure have dampened consumer interest in EV purchases. Furthermore, the timing of these layoffs is notable, as GM prepares to bolster light-duty truck production at its Fort Wayne, Indiana assembly plant by adding 250 temporary workers. This strategy aims to maximize truck output while addressing the declining numbers in EV sales. Notably, the layoffs at Factory Zero are not linked to the recent auto tariffs imposed by President Donald Trump, according to company sources. Instead, the company is making adjustments purely based on market demand and the current economic landscape. GM's efforts reflect broader trends within the automotive industry, where several manufacturers have had to recalibrate their production plans amid fluctuating consumer interest in EVs. The company’s authority recognizes the importance of balancing its manufacturing capabilities in light of a changing marketplace and evolving consumer preferences, which will be crucial as they navigate the competitive landscape of electric vehicles moving forward.