GM Temporarily Halts Production of Hummer EV and Escalade IQ

A Pause at Factory Zero

General Motors is facing another shake-up in its electric vehicle production strategy. The automaker has announced a temporary and partial production shutdown at its Factory Zero plant in Detroit-Hamtramck, a site that has been central to its EV push. The pause will affect two of GM’s most high-profile models: the GMC Hummer EV and the Cadillac Escalade IQ.

According to GM, the plant will suspend both first- and second-shift production of these vehicles between Labor Day and October 6. The move was first reported by the Detroit Free Press and later confirmed by a company spokesperson.

Why GM Is Pausing Production

GM emphasized that this is not a permanent move but part of its routine production alignment process.

“Factory Zero is making temporary adjustments to production to align to market dynamics,” a GM spokesperson explained. “General Motors updates schedules as part of our standard process of aligning production to manage vehicle inventory.”

In short, GM is slowing down the output of its largest and most expensive EVs to better match current demand levels.

Impact on Workers

The temporary shutdown will affect about 160 employees at Factory Zero. However, this comes on top of a previous reduction in April, when GM announced layoffs impacting an additional 200 workers.

The company confirmed that affected employees will be placed on temporary layoff status and may be eligible for subpay and benefits until production resumes.

Struggles With Big EVs

Despite their engineering achievements—massive size, extreme power, and luxury features—the Hummer EV and Escalade IQ are not selling in high volumes.

Instead, GM is seeing stronger demand for its more affordable models, such as the Chevrolet Equinox EV and Chevrolet Blazer EV, which are topping internal sales charts. By contrast, the Hummer EV, Sierra EV, and Escalade IQ are closer to the bottom in terms of consumer interest.

This trend is not unique to GM. Ford and Tesla are both grappling with lower-than-expected demand for their electric pickups, including the F-150 Lightning and the Cybertruck.

EV Pickup Market Struggles Nationwide

The slowdown highlights a broader challenge for the industry: convincing Americans to switch from gas-powered trucks to electric alternatives.

According to market research firm AutoForecast Solutions, U.S. automakers collectively sold about 35,000 electric pickups in the first half of 2025. That’s 4% less than the same period in 2024, and nowhere near the 1.6 million gas-powered full-size pickups sold during the same timeframe.

The gap is striking. Even with generous torque, impressive acceleration, and futuristic tech, EV pickups have not yet managed to shake the dominance of their gasoline rivals in the American market.

What’s Next for GM?

For GM, the temporary shutdown may help stabilize inventory and avoid overproduction. Analysts note that this move also reflects a larger strategic pivot: shifting focus away from halo models like the Hummer EV and Escalade IQ and toward more accessible EVs that resonate with a wider customer base.

Industry watchers believe this adjustment won’t be the last. Automakers are learning that the road to electrification in the U.S. will require not just innovation, but also pricing strategies, charging infrastructure improvements, and consumer education.

Conclusion

While GM’s Factory Zero pause is labeled as temporary, it underscores a real and ongoing challenge: the American EV pickup segment is still struggling to find traction. GM, like its rivals, must walk a fine line between building groundbreaking vehicles and delivering products that buyers actually want—and can afford.

For now, the Hummer EV and Escalade IQ will wait on the sidelines, as GM rebalances its EV playbook in a market that remains cautious about fully embracing electric trucks.

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