GM skips EVs to expand pickup, Escalade production in Michigan
According to recent reports by the Detroit Free Press and Reuters, General Motors further revealed new plans for a key facility that was initially intended to make electric vehicles. In a statement, the automaker said that it will move production of the Cadillac Escalade luxury full-size SUV to the Orion Assembly plant in Michigan, while also adding capacity for the gas-powered Chevrolet Silverado and GMC Sierra pickup trucks.
Currently, the Escalade is produced at the Arlington Assembly plant in Arlington, Texas, alongside its mechanically related cousins, the Chevrolet Tahoe and Suburban, as well as the GMC Yukon and Yukon XL. According to the automaker, the added Silverado and Sierra production at Orion is intended to supplement existing production capabilities in Fort Wayne, Indiana.
GM is set to expand gas-powered car production amid slumping EV demand
The announcement comes about a month after General Motors announced multi-billion-dollar investment plans to support domestic auto manufacturing. On June 10, GM announced that it would invest about $4 billion over the next two years to support its U.S. manufacturing plants and efforts to produce gas and electric vehicles. Although the automaker did not specify how much money each plant would receive, it said that the $4 billion would help reconfigure facilities, including the Orion Assembly, the Fairfax Assembly plant in Kansas, and the Spring Hill Manufacturing plant in Tennessee, for future GM vehicles.
Originally, Orion was set to be reconfigured for electric vehicle production; however, slowing EV demand triggered delays in restarting the plant. As a result, GM designated the Factory Zero electric vehicle plant in Detroit as the dedicated facility for manufacturing the Chevrolet Silverado EV, GMC Sierra EV, Hummer EV, and Cadillac Escalade IQ. Currently, the Orion assembly manufactures battery modules for full-size EV vehicles made at Factory Zero. In a statement to the Detroit Free Press, a GM spokesperson said that to keep up with customer demand, it will begin production of the gas-powered trucks and SUVs at Orion in 2027.
'GM 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,' the GM spokesperson told Freep. 'GM is proud to call Michigan home, and these moves will further strengthen our manufacturing footprint.'
New manufacturing plans come at a conscientious time for GM
Although the details of General Motors' production decisions were announced when the automaker announced its multi-billion-dollar domestic manufacturing investment nearly a month ago, the timing could not come at a better time.
Currently, the Trump administration's tariffs on vehicle imports are putting direct pressure on the auto industry, and his latest round of double-digit tariff threats is being directed at trade partners, including Mexico and South Korea, countries where the automaker makes some U.S.-market vehicles. Previously, GM indicated that these tariffs would cost the company between $4 billion and $5 billion this year, which prompted executives to revise GM's full-year earnings guidance.
In addition, the recently signed "Big Beautiful Bill" contained provisions that eliminated fines for automakers failing to meet Corporate Average Fuel Economy (CAFE) rules, making it easier for automakers to build more gas-powered vehicles. According to a 2023 Reuters report, the National Highway Traffic Safety Administration (NHTSA) fined GM more than $128.2 million for failing to meet CAFE rules during the 2016 and 2017 model years.
Final thoughts
Pickup trucks and full-size SUVs are some of the most profitable and best-selling vehicles for General Motors. According to a slide deck on GM's website, the first half of 2025 was the best first half for both its pickups and full-size SUVs, while data seen by GM Authority shows that overall Chevrolet Silverado sales improved by 2.15%, with 283,812 of them leaving Chevy dealers from the beginning of the year.
Though the Big Bill eliminates CAFE fines, it also contains provisions eliminating the $7,500 federal tax credit for electric vehicle purchases, which could dent General Motors' Equinox EV and Blazer EV sales numbers come September. We will have to wait and see.
GM skips EVs to expand pickup, Escalade production in Michigan first appeared on Autoblog on Jul 16, 2025
This story was originally reported by Autoblog on Jul 16, 2025, where it first appeared.
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