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GM temporarily cuts shifts at Detroit electric vehicle plant

Summer Ballentine, The Detroit News on

Published in Business News

General Motors Co. is slowing production of two electric SUVs at Detroit's Factory Zero plant amid lower-than-expected U.S. interest in battery-powered vehicles.

The automaker confirmed Thursday that it will shut down one shift each for the GMC Hummer EV and Cadillac Escalade IQ from Sept. 2 to Oct. 6; the move was first reported by the Detroit Free Press. Production of the Chevrolet Silverado EV and GMC Sierra EV pickups at the Factory Zero Detroit-Hamtramck Assembly Center will be unchanged.

"Factory ZERO is making temporary adjustments to production to align to market dynamics," spokesperson Kevin Kelly said in a statement. "General Motors updates schedules as part of our standard process of aligning production to manage vehicle inventory. Impacted employees will be placed on a temporary layoff and may be eligible for subpay and benefits in accordance with the GM-UAW national contract."

GM CEO Mary Barra has been dogged in her commitment to electrifying the Detroit automaker's fleet. But EV adoption in the United States lags behind industry expectations, and the upcoming loss of federal tax incentives for buyers and the rollback of emissions regulations under President Donald Trump likely will further dampen sales.

 

GM in April temporarily cut about 200 jobs at the all-electric Factory Zero because of ebbing interest in the electric trucks and SUVs made there.

Ford Motor Co. made its Rouge Electric Vehicle Center in Dearborn that assembles the F-150 Lightning truck a one-shift operation last year, and it nixed plans to build an all-electric three-row SUV in its Oakville Assembly Complex in Ontario.


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