Key Takeaways
- General Motors is prolonging its Factory ZERO EV facility shutdown in Detroit, temporarily laying off approximately 1,300 employees through April 13.
- The extended downtime follows earlier reductions that began March 16, with Factory ZERO eliminating more than 2,300 positions since late 2025.
- The automaker has accumulated $7.6 billion in electric vehicle program losses and abandoned several EV initiatives beginning in late 2024.
- GM is redirecting resources toward traditional combustion engines, ramping up heavy-duty pickup production at a Michigan facility starting this June.
- Barclays’ Dan Levy maintains a $105 price objective on GM shares, suggesting approximately 44% potential gains from current trading levels.
General Motors (GM) is prolonging production downtime at its Detroit-based Factory ZERO electric vehicle facility, placing roughly 1,300 employees on temporary layoff status until April 13. This action extends a manufacturing suspension that commenced March 16.
A company representative stated that Factory ZERO will “temporarily adjust production to align EV production with market demand,” noting that affected workers might qualify for supplemental pay and benefits according to provisions in the GM-UAW national agreement.
The facility manufactures the Chevrolet Silverado EV and GMC Hummer EV—two flagship electric offerings from GM’s portfolio. Both vehicles have experienced weaker consumer uptake than initially projected, despite generating significant early interest.
These workforce reductions represent the latest in a series of cutbacks at the location. Factory ZERO eliminated approximately 1,200 positions in late 2025, followed by more than 1,100 additional cuts in early 2026, while slashing production capacity by half this January. The trend suggests a significant pullback from the ambitious electric vehicle goals GM established several years ago.
GM has accumulated $7.6 billion in total losses from its electric vehicle operations. The automaker has also terminated the BrightDrop electric commercial van program, converted a Lansing manufacturing site to build gas-powered Cadillac CT5 sedans rather than EVs, and scrapped plans for electric vehicle component production at a Toledo transmission facility.
The September 2025 elimination of the $7,500 federal EV tax incentive, implemented under Trump administration policies, has intensified challenges. Electric vehicle demand has weakened from 2024 peaks, affected by elevated pricing and ongoing concerns about charging network availability.
Renewed Focus on Internal Combustion
GM is redirecting attention toward its profitable segments: gasoline-powered trucks and sport utility vehicles. The manufacturer announced plans to boost heavy-duty pickup production at a Michigan assembly plant beginning in June. Competitor Ford (F) is pursuing a parallel strategy, expanding its own traditional pickup truck manufacturing.
Determining optimal product mix has grown increasingly challenging. Ongoing Middle East tensions have elevated gasoline prices, complicating EV demand projections since the duration of these market pressures remains uncertain.
GM provided 2026 adjusted earnings per share guidance ranging from $11.00 to $13.00, with North American EBIT-adjusted margins anticipated to rebound to the 8% to 10% range, improving from 6.1% recorded in Q4 2025.
The automaker repurchased approximately 91 million shares throughout 2025 and has greenlighted a fresh $6 billion buyback program without expiration. Super Cruise revenue is forecast to reach $400 million in 2026, climbing from $234 million in 2025.
Wall Street Perspective
Barclays analyst Dan Levy reduced his price objective to $105 from $110 while maintaining an Overweight recommendation. Based on the current share price of $72.98, this target represents roughly 44% upside potential.
Levy revised his financial models in preparation for Q1 results, adjusting near-term projections while preserving confidence in GM’s long-term profitability outlook. First quarter 2026 tariff-related expenses are anticipated between $750 million and $1 billion.
According to TipRanks, GM carries a Moderate Buy consensus rating, derived from 15 Buy recommendations, three Hold ratings, and one Sell opinion. The mean price target of $95.50 indicates approximately 31% upside potential from present levels.
GM’s first quarter 2026 financial results are scheduled for release on or near April 27.
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