GMC Hummer EV Production Pause Extended Through Year-End

The GMC Hummer EV production pause began as a five-week stoppage and has been extended throughout the rest of the year. This slowdown could be a signal.

What started as a five-week production pause in September just got extended through the rest of 2025, leaving GM’s most expensive EVs sitting on the sidelines at Factory Zero in Detroit. The GMC Hummer EV and Cadillac Escalade IQ, both starting around $100,000-plus, are victims of reality hitting hard after years of hype. While GM’s cheaper Equinox EV sold 8,500 units in July alone, these massive electric trucks are gathering dust on dealer lots.

The hype is over, causing GM EV sales slowdown

The math is brutal: GM’s selling seven gas Escalades for every electric one, and the Sierra/Silverado EVs combined barely match Hummer EV’s already weak numbers. About 280 workers are affected by the extended shutdown, though the Silverado EV and Sierra EV production continues at the same plant. This comes after GM already laid off 200 workers there in April and just invested $888 million in a new V8 engine plant, which is a pretty clear signal about where they think the market’s headed.

The original plan had GM selling 90,000 Hummers based on reservations that apparently evaporated when people saw the price tags. Now these $130,000 Escalade IQs and $99,000 Hummers are learning what happens when you price EVs like exotic cars but sell them to truck buyers who actually use their vehicles.

The GMC Hummer EV production pause could have been predicted

There are only so many customers in the world who can and will shell out more than $100,000 for an electric truck. Even if that vehicle is a luxury model, this six-figure price might seem too steep. The fact that the Cadillac Escalade IQ is also shutdown should be a signal to the entire market regarding the electric truck demand. If a luxury model carrying the Escalade name can’t make it to customers in desirable numbers, Factory Zero in Detroit might be in serious trouble.

Trouble in the EV market has already led to GM layoffs, and this 2025 production halt has been extended to the end of the year. As GM EV sales continue to slow down, it seems like a bleak outlook for the company’s electric vehicle sales.

Is the gas-engine investment to blame?

Many factors are at play and have caused the GMC Hummer EV production pause, but not the investment in gas engines. GM announced that investment last year, before anyone could have predicted the incredible shift away from EVs and back toward gas-powered vehicles in the American automotive market. There are several factors causing this production pause; here are a few of them:

The electric vehicle market has slowed

Fads are usually only found in fashion, and some companies find ways to capitalize on those fads. Electric vehicles reached the market, offering an alternative to gas and diesel-powered vehicles. This gave car shoppers a great alternative to dirty, emissions-heavy vehicles in favor of models that produced zero emissions. Unfortunately, the desire for eco-friendly vehicles has slowed to the point of saturation. Consumers want EVs that function and do the job as well or better than gas and diesel vehicles, and that hasn’t happened yet, causing the market to slow significantly.

The GMC Hummer EV production pause was predictable

The GMC Hummer EV was the first large electric vehicle to reach the market, but even during its early years, there were issues with the high price, size, and appeal of such a big vehicle. Some shoppers flocked to the Hummer EV, allowing them to boast about being some of the first to drive it, but it’s not the most practical or cost-effective model on the market. The Equinox EV sales compared to the stoppage of Hummer EV production show a huge difference in the market for such vehicles.

The government impact on vehicle sales

The current federal government administration has made it more attractive to buy smaller gas-powered vehicles than EVs. The Federal EV Tax Credit is gone, new charging stations aren’t being built, and automakers have successfully lobbied for a softening of CAFÉ and emissions standards. This means V8 engines are making a comeback while EVs are being pushed aside.

Additionally, the tariffs imposed on nearly every imported product have caused consumer prices to increase. This means vehicles cost more, groceries cost more, everything costs more, and Americans haven’t seen an increase in income to offset these costs. This means spending $100,000 on a vehicle isn’t going to happen at the same rate as before.

If things continue as they currently are, the GMC Hummer EV production pause might only be the start of the end of the first wave of electric vehicles. Automakers need to develop affordable, long-range EVs that perform like gas and diesel-powered models, but that hasn’t happened yet.