GM slows production of GMC Hummer EV and Cadillac Escalade IQ
According to the Detroit Free Press, the slowdown is scheduled between 2 September and 6 October. During this period, production of the GMC Hummer EV and Cadillac Escalade IQ will pause on both the first and second shifts. Around 160 of the roughly 4,000 plant workers will be affected. Both vehicles rank among the largest and most expensive electric models in GM’s portfolio.
A GM spokesperson told the paper that the temporary measure would help align output with demand: “Factory Zero is making temporary adjustments to production to align to market dynamics,” the spokesperson said.
The production pause follows a similar move GM announced in April at the same Detroit facility. At that time, the carmaker opted for a temporary reduction in its workforce. 200 employees were laid off as GM reported declining sales of the GMC Hummer EV (both pickup and SUV), GMC Sierra EV, Chevrolet Silverado EV, and Cadillac Escalade IQ. Notably, demand has only cooled for these larger models. By contrast, GM’s new entry-level EVs, such as the Chevrolet Equinox EV and Blazer EV, are seeing strong sales growth.
Against this backdrop, GM presented a more differentiated product strategy in early summer. In terms of powertrain mix, the company is once again leaning more heavily towards petrol. At the same time, GM announced plans for another “affordable next-generation EV” at its Kansas facility.
Overall, GM intends to invest around four billion US dollars over the next two years to expand production at its US plants. Three factories in Michigan, Kansas and Tennessee will benefit most, to assemble “over two million vehicles annually in the US.” GM has not specified how that volume will be distributed across powertrains. In June, however, the company outlined the following production plans:
- The Orion Assembly plant in Michigan will begin building petrol SUVs and light pickups in early 2027. Originally, GM had planned to start producing electric pickups there in 2026.
- Fairfax Assembly in Kansas will add production of the recently launched petrol Chevrolet Equinox from mid-2027, a model currently only built in Mexico. By the end of this year, Fairfax will also start producing the Chevrolet Bolt EV. Part of GM’s announced investments will go into preparing the site for affordable next-generation EVs.
- At Spring Hill Manufacturing in Tennessee, GM will begin producing the petrol-powered Chevy Blazer from 2027, a model that is also currently assembled in Mexico. It will be built alongside the electric Cadillac Lyriq and Vistiq SUVs, as well as the petrol Cadillac XT5.
The focus on new combustion models fits with GM’s recent announcement to invest 888 million US dollars in its Tonawanda Propulsion plant near Buffalo, New York, to build its next-generation V8 engine. Meanwhile, the Factory Zero site in Detroit-Hamtramck (also Michigan) will remain GM’s dedicated EV plant, continuing to exclusively assemble the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ and GMC Hummer EV (pickup and SUV) – albeit with the temporary production cuts outlined above.
GM currently reports overall sales growth in the US for both petrol and electric vehicles. The company also stresses that, in the second half of 2024, it became the country’s second-largest EV seller behind Tesla, thanks to the 13 all-electric models now available across its brands.
This article was first published by Cora Werwitzke for electrive’s German edition.
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