General Motors announced on Tuesday plans to shift production of a gasoline-powered SUV to its Michigan assembly facility while simultaneously expanding its pickup truck manufacturing capacity within the state.
The automaker revealed that production of the Cadillac Escalade, along with the Chevrolet Silverado and GMC Sierra light-duty pickups, will commence at the Orion Assembly plant in early 2027 to address robust customer demand.
Currently, the Escalade is manufactured in Arlington, Texas, while the Silverado and Sierra are produced at a plant in Fort Wayne, Indiana, which will maintain its output. Due to heightened demand, GM aims to augment the truck production at Orion Assembly.
This decision is part of GM’s broader strategy to invest $4 billion into its U.S. operations, a commitment first disclosed in June. This investment strategy follows significant tariff measures introduced by the Trump administration earlier this year, including a 25% levy on imported vehicles and similar duties on various auto parts entering the U.S.
The plans also reinforce the company’s commitment to maintaining a portfolio inclusive of gasoline-powered vehicles.
The Orion Assembly facility, located near Detroit, is being revamped for gas vehicle production, though it was initially slated to become GM’s second factory dedicated exclusively to electric vehicles in the country.
While CEO Mary Barra previously stated in 2021 that GM intended to transition to an all-electric vehicle lineup by 2035, the company has since acknowledged that the uptake of electric vehicles has been slower than anticipated, leading to a reconfiguration of its production strategy in response to consumer preferences.
