Key Takeaways

General Motors has prolonged the shutdown of its Factory ZERO electric vehicle facility in Detroit, temporarily furloughing approximately 1,300 employees through April 13.
This extension continues workforce reductions that began March 16, with Factory ZERO eliminating more than 2,300 positions since the end of 2025.
The automaker’s electric vehicle initiatives have accumulated $7.6 billion in total losses, prompting cancellations of several EV projects beginning in late 2024.
GM is pivoting resources toward traditional combustion engines, planning to increase heavy-duty pickup truck manufacturing at a Michigan facility starting this June.
Barclays maintains a $105 price objective on GM shares, suggesting approximately 44% potential upside from today’s trading levels.

General Motors (GM) has decided to prolong the production halt at its Factory ZERO electric vehicle manufacturing facility located in Detroit, resulting in the temporary furlough of approximately 1,300 employees until April 13. This decision extends a shutdown that initially commenced on March 16.

General Motors Company, GM

A company representative stated that the facility would “temporarily adjust production to align EV production with market demand,” noting that affected workers may qualify for supplemental unemployment benefits and healthcare coverage through the GM-UAW collective bargaining agreement.

Factory ZERO serves as the production hub for the Chevrolet Silverado EV and GMC Hummer EV — two flagship electric offerings from GM’s portfolio. Both vehicles have experienced weaker consumer uptake than originally projected despite significant marketing campaigns.

This marks the latest in a series of workforce reductions at the facility. Factory ZERO eliminated approximately 1,200 positions in late 2025, followed by more than 1,100 additional cuts in early 2026, and reduced manufacturing capacity by half in January. These successive reductions signal a significant pullback from the ambitious electric vehicle objectives GM established several years earlier.

The Detroit automaker has now accumulated $7.6 billion in cumulative losses across its electric vehicle portfolio. Additionally, the company has discontinued the BrightDrop commercial electric van program, converted a Lansing manufacturing plant to produce gas-powered Cadillac CT5 sedans rather than electric vehicles, and abandoned plans for EV component manufacturing at a Toledo transmission facility.

The elimination of the $7,500 federal electric vehicle tax incentive in September 2025, implemented under regulations from the Trump administration, has intensified market challenges. Consumer appetite for electric vehicles has diminished since reaching peak levels in 2024, pressured by elevated pricing and persistent concerns regarding charging network availability.

Returning to Traditional Powertrains

GM is refocusing on its historically profitable segment: gasoline-powered trucks and sport utility vehicles. The manufacturer announced intentions to expand heavy-duty pickup truck production at a Michigan assembly plant beginning in June. Competitor Ford (F) is pursuing a comparable strategy, scaling up its own conventional pickup truck manufacturing.

Determining the optimal product portfolio has become increasingly challenging. Ongoing conflict in the Middle East has elevated gasoline prices, creating uncertainty around electric vehicle demand forecasting as the duration of these pressures remains unknown.

GM provided 2026 guidance for adjusted earnings per share between $11.00 and $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 corporation bought back approximately 91 million shares throughout 2025 and has approved a fresh $6 billion share repurchase program without an expiration date. Super Cruise technology revenue is forecast to reach $400 million in 2026, climbing from $234 million in 2025.

Wall Street’s Perspective

Barclays analyst Dan Levy reduced his price objective to $105 from $110 while maintaining an Overweight recommendation. Based on the current trading price of $72.98, that target represents approximately 44% potential appreciation.

Levy revised his financial models in advance of Q1 results, lowering near-term projections while preserving confidence in GM’s long-term profitability potential. First quarter 2026 tariff-related expenses are anticipated to range 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 rating. The consensus price target of $95.50 suggests roughly 31% upside potential from present levels.

GM’s first quarter 2026 financial results are scheduled for release on or around April 27.

The post General Motors (GM) Stock: Factory ZERO Extends Layoffs Through April as EV Strategy Stumbles appeared first on Blockonomi.

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Filed under: Bitcoin - @ March 31, 2026 10:11 am