GM Lays Off 1,200 Detroit Workers Amid Slower Electric Vehicle Sales: Reports

DETROIT — General Motors will lay off roughly 1,200 workers at its all-electric assembly plant in Detroit due to a slowing U.S. electric vehicle market, according to multiple news reports.

The Detroit-Hamtramck Factory Zero plant went offline earlier this week and will remain shut down until Nov. 24. It will then reopen with two shifts until the holiday break, before dropping to just one shift when reopens on Jan. 5, 2026, according to a Detroit News report.

The auto giant is also cutting 550 jobs at Ultium Cells battery cell plant in Ohio, while another 850 workers are slated for "temporary layoffs," along with 700 employees in Tennessee, reports said.

Workers affected "may be eligible to continue receiving a significant portion of their regular wages or salary, plus benefits," General Motors said.

"In response to slower near-term EV adoption and an evolving regulatory environment, General Motors is realigning EV capacity," according to a company statement issued Wednesday. "Despite these changes, GM remains committed to our U.S. manufacturing footprint, and we believe our investments and dedication to flexible operations will make GM more resilient and capable of leading through change."

The news comes amid a dwindling U.S. electric vehicle sales, which is largely spurred by the recent expiration of federal tax credits. Before Sept. 30, new electric vehicles came with a $7,500 federal tax credit, and used ones included up to $4,000.

Eliminating the tax credit was part of a massive tax and spending cut bill Congress passed in June.