General Motors has announced plans to expand production of gas-powered vehicles and SUVs in Michigan as well as the manufacturing of pickup trucks.
The Detroit-based auto manufacturer said in a statement on Tuesday that it will “begin production of the Cadillac Escalade, as well as the Chevrolet Silverado and GMC Sierra light duty pickups at Orion Assembly in early 2027 to help meet continued strong customer demand.”
According to CNBC, the Escalade is produced in Arlington, Texas, while the Silverado and Sierra trucks are made at an assembly plant in Fort Wayne, Indiana, which will continue to produce the vehicles.
The move builds on GM’s plans to invest $4 billion in U.S. facilities, which the automaker announced in June. That announcement came after President Donald Trump earlier this year implemented 25% tariffs on imported vehicles and 25% duties on many auto parts imported into the U.S.
It also builds on the automaker’s gas-powered vehicle production.
The Orion Assembly plant in suburban Detroit, which is being retooled for gas products, was expected to be its second electric vehicle-exclusive plant in the U.S.
The announcement comes after GM CEO Mary Barra said in 2021 that the company would exclusively offer EVs by 2023, citing carbon emissions.
“For General Motors, our most significant carbon impact comes from tailpipe emissions of the vehicles that we sell — in our case, it’s 75 percent,” Barra said at the time. “That is why it is so important that we accelerate toward a future in which every vehicle we sell is a zero-emissions vehicle.”
Barra further characterized the 2035 EV goal as an “aspiration.”
Dane Parker, GM chief sustainability officer, predicted that moving to EVs would be a successful business model.
“We feel this is going to be the successful business model of the future,” he said in 2021. “We know there are hurdles, we know there are technology challenges, but we’re confident that with the resources we have and the expertise we have that we’ll overcome those challenges and this will be a business model that we will be able to thrive in the future.”
While GM has seen a surge in EV sales recently, overall customer demand for EVs have not met expectations.
“For years, the automotive industry has been in a state of EV euphoria. Automakers trotted out optimistic sales forecasts for electric models and announced ambitious targets for EV growth. Wall Street boosted valuations for legacy automakers and startup entrants alike, based in part on their visions for an EV future,” CNBC reported.
“Now the hype is dwindling, and companies are again cheering consumer choice. Automakers from Ford Motor and General Motors to Mercedes-Benz, Volkswagen, Jaguar Land Rover and Aston Martin are scaling back or delaying their electric vehicle plans,” it added.
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