United States. General Motors (GM) announced the temporary closure of two of its electric vehicle production plants due to low market demand, which will result in the temporary layoff of 700 employees.
The measure affects the Factory Zero plant, located in Detroit, Michigan, where 200 workers will be suspended, and the CAMI Assembly plant in Ingersoll, Ontario (Canada), where 500 employees will be temporarily unemployed. In the latter, GM produces its BrightDrop electric delivery vans, whose sales have been lower than expected.
According to the company, the cuts seek to "align production with current market dynamics." Workers may be eligible for benefits under the collective bargaining agreement with the UAW.
The announcement comes just days after GM confirmed the end of production of the Cadillac XT6, a three-row gasoline-powered SUV, which will be replaced by the 100% electric Cadillac Vistiq model. This change is part of a wider transition of the brand towards an all-electric line.
Despite the adjustment, GM reaffirmed its commitment to electric mobility with the announcement of six new models for 2026: Escalade IQ, Escalade MCM, Optiq, Vistiq, Lyriq-V and Cadillac CT5.
Manufacturers such as GM have struggled to boost the adoption of electric vehicles, not because of a lack of supply, but because of consumer resistance to abandoning combustion models, amid higher prices and a still-limited charging infrastructure.
So far, the company has not confirmed when the suspended workers could be reinstated.
