America’s No1 carmaker stuns workers with job cuts… as bosses grapple with Trump’s car tariffs
General Motors is adjusting part of its American-made electric future.
The automaker is temporarily laying off around 200 workers at Factory Zero, its EV-focused facility in Detroit. GM told DailyMail.com the layoffs will not impact the factory’s output.
A company spokesperson said the production shift is meant to ‘align with market dynamics’ and isn’t tied to the newly announced auto tariffs.
The production facility builds GM’s high-cost electric bets: the Chevy Silverado EV, GMC Sierra EV, Hummer EV SUV and pickup, and Escalade IQ.
The company touted more than 4,500 employees worked at the production plant before the temporary layoffs.
A little more than 4 percent of the jobs are impacted by the decision.
While GM doesn’t attribute the temporary layoffs to President Donald Trump’s tariffs, it does cut against his stated intention of rejuvenating American manufacturing capacity.
GM is now the second Big Three American car brand to announce US-based layoffs since the launch of the White House’s 25 percent auto tariffs.
GM said it is temporarily laying off 200 employees at the factory that builds the EV GMC Hummer
Stellantis — the parent company of major American brands like Dodge, Jeep, Chrysler, and Ram — recently laid off 900 employees at five US facilities.
The Jeep-maker said the cuts were directly attributed to Trump’s policies because the US factories produced parts for Canadian and Mexican final assembly plants.
Cars built on the inter-country production lines, which employed thousands of American stampers and powertrain builders, are potentially subject to multiple tariffs because the parts cross US, Mexican, and Canadian borders several times.
GM and Stellantis are not alone.
Global automakers have made a raft of changes to their American business models because of Trump’s tariffs.
Volkswagen, the second-largest global automaker, said it would add a ‘import fee’ line to its vehicle stickers to maintain pricing transparency.
The move will put the direct cost of Trump’s tariffs next to the price of vehicle add-ons (like heated seats or a panoramic sunroof), MPG estimates, and taxes.
The company also temporarily held some of its luxury Audi cars at ports. But an Audi spokesperson said they have since released the cars into the US market.
GM’s CEO Mary Barra said the company would ‘happily ramp up production’ of gas cars if needed
President Trump has said that his tariffs will bring back manufacturing jobs to the US
They declined to comment if the cars are now more expensive.
Ford has launched a sales program, bringing employee pricing rates to American shoppers.
The company, which had a higher supply of vehicles on their dealership lots compared to industry averages, said the event runs through June 2.
GM also announced major changes due to the tariffs: the company said it was increasing productiong of its high-cost pickup trucks built in the US.
CEO Mary Barra has said the company is working through its blend of gas and electric vehicles to match American market demand.
Earlier this year, the company killed off the Cadillac XT4, one of its best sellers, to make way for the production of Chevy’s upcoming EV Bolt.
But if EV demand dwindles, Barra remains confident in GM’s gas-powered offerings.
‘If there are factors that cause EV demand to lessen, we have a great ICE portfolio that we’d happily ramp up production beyond what we have in our current plans for this year,’Barra said in a January earnings call.
