Latest news with #OrionAssembly
Miami Herald
16-07-2025
- Automotive
- Miami Herald
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. 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." 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. 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. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
CNBC
15-07-2025
- Automotive
- CNBC
GM expands production of gas-powered SUV, trucks in Michigan
General Motors said Tuesday it will move production of a gas-powered SUV to an assembly plant in Michigan and add manufacturing of pickup trucks in its home state. "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 Detroit automaker said in a statement. The Escalade is currently produced in Arlington, Texas. The Silverado and Sierra trucks are made at an assembly plant in Fort Wayne, Indiana, which will continue to produce the vehicles. GM said it is adding more production of the trucks to its Orion Assembly plant in Michigan because of strong demand. 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. CEO Mary Barra had said in 2021 that GM would exclusively offer EVs by 2035, but the automaker has since said customer demand for EVs has been slower than expected and has shifted plans to meet consumer demand.
USA Today
17-06-2025
- Automotive
- USA Today
GM pledges $4 billion in new US manufacturing investments
GM pledges $4 billion in new US manufacturing investments Show Caption Hide Caption General Motors: History, innovation, and legacy Learn about the rich history and notable innovations of General Motors, from its founding in 1908 to its leadership in electric and autonomous vehicle technology. Two popular Chevrolet models will move to U.S. plants from Mexico. The plan is to produce gas-powered full-size SUVs and light duty pickup trucks at Orion Assembly in Michigan early 2027. GM also is retooling its Fairfax Assembly plant in Kansas and the Spring Hill Manufacturing plant in Tennessee. General Motors will invest $4 billion in three U.S. manufacturing sites over the next two years to prepare for changing production slated to begin in 2027. Two popular Chevrolet models also will move to U.S. plants from Mexico as part of the shift. As part of the announcement on June 10, GM also confirmed reports that it has no current plans to produce electric vehicles at its Michigan Orion Assembly plant. Instead, the company will produce gas-only vehicles at the plant after its retooling. The Chevrolet Blazer also is slated for a refresh, the company spokesman confirmed, and its production will move from Mexico to the United States by 2027. The new investment will not reduce any production in North America, according to a company spokesman, and does not include previously announced U.S. investment as part of its 2023 UAW labor contract. Sam Abuelsamid, vice president of market research at Telemetry, said his interpretation of the news is that GM's production changes come as a response to President Donald Trump's tariffs. Trump imposed 25% tariffs on imported vehicles and 25% tariffs on many auto parts imported into the United States earlier this year. On May 1, GM lowered its 2025 guidance, saying tariff expenses are likely to eat up to $5 billion in previously expected profits. 'They won't say it outright, but it's almost certain that they're moving production from Mexico to the U.S.,' he said, 'You're looking at between 400,000 and 500,000 more units in the U.S. They're not expecting to sell that many more vehicles in the U.S.' Automotive industry moves: General Motors commits $888 million to build next-gen V-8 engine in New York Orion Assembly changes GM planned to relaunch Orion Assembly after a $4 billion retooling and expansion to assemble the Silverado EV and GMC Sierra EV later this year for late 2025 model year production, but that was pushed ahead six months to mid-2026. Previously, Orion made the Chevrolet Sonic and Bolt EVs, though production of those vehicles ended there last year. The plan now is to produce gas-powered full-size SUVs and light duty pickup trucks at Orion in early 2027, according to the company. Also by then, GM's Factory Zero in Detroit-Hamtramck will serve as the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ and GMC Hummer EV pickup and SUV. Praise for production changes GM's production announcement was met with near-universal praise from the White House, the United Auto Workers union and Michigan politicians on both sides of the aisle. 'No president has taken a stronger interest in reviving America's once-great auto industry than President Trump, and GM's investment announcement builds on trillions of dollars in other historic investment commitments to Make in America,' White House spokesman Kush Desai said in a statement. 'The One, Big, Beautiful Bill's tax cuts, pro-growth policies, and full expensing of equipment investments will only turbocharge this resurgence under President Trump.' Trump's 'Big, Beautiful' tax bill proposes, among other things, to kill the electric vehicle tax credit by the end of this year and penalize hybrid and electric vehicle owners with annual fees to compensate for lost revenue customers would have paid in gas tax. UAW President Shawn Fain said in a statement that the union had said for months that the auto industry could utilize excess capacity at U.S. auto plants and invest billions into factories, communities and American autoworkers. 'While other companies drag their feet, GM is showing that strategic auto tariffs work with a massive $4 billion investment that will create thousands of good paying union jobs. Thanks to the dedication of our members, who have been speaking up about the damage done by bad trade deals, we are finally starting to see real progress,' he said. 'It's time to invest in blue collar America, and GM is showing how it's done. This is just the beginning.' U.S. Rep. and House Republican Conference Chairwoman Lisa McClain, R-Bruce Township, said in a statement GM's decision follows a series of economic moves made by the Trump administration aimed at reversing decades of industrial decline. The Orion Assembly plant is located in McClain's congressional district. 'This investment is a game-changer for our district and a big win for hard-working Michiganders,' McClain said. 'For months, we have said the president's efforts would pay off and more companies would invest in America again. Putting our country first, for the first time in years, is working. This investment is proof. I'm proud to have helped deliver this major win for our community.' U.S. Rep. Debbie Dingell, D-Ann Arbor, also praised the decision. 'This is good news for Michigan's workers and our role as a leader in the global auto industry. In order to remain a leader, we must be producing a robust product line that consumers want, including electric vehicles,' she said in a statement. 'The global market wants EVs. This investment demonstrates the auto industry's commitment to this leadership, and U.S. policy must support it. I will continue to work with every stakeholder to invest in manufacturing here at home, bring back jobs from overseas, and support the workers and communities who have built their lives around the auto industry." GM CEO Mary Barra said in a statement: 'We believe the future of transportation will be driven by American innovation and manufacturing expertise. Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.' Other investments GM also is retooling its Fairfax Assembly plant in Kansas City and the Spring Hill Manufacturing plant in Tennessee. Fairfax Assembly will produce the gas-powered Chevrolet Equinox beginning in mid-2027, and will start producing the 2027 Chevrolet Bolt EV by the end of 2025. The Mexico-assembled Equinox is one of GM's top-selling vehicles and the No. 1 single nameplate that GM produces in Mexico for the U.S. market. GM exported 257,000 gas and electric Equinox vehicles from its Ramos plant across 2024, Abuelsamid said. GM said it plans to announce further investments to Fairfax for electric vehicles in the future. As for Spring Hill, in addition to bringing the Chevrolet Blazer production up from Mexico, the plant will also produce the Cadillac Lyriq and Vistiq EVs, as well as the Cadillac XT5. Once these changes come into play, Abuelsamid said, vehicle costs may rise. 'GM will probably increase prices once they increase U.S. production,' he said. 'That's why these vehicles were built in Mexico in the first place.' Free Press staff writer Todd Spangler contributed to this report. Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@
Miami Herald
15-06-2025
- Automotive
- Miami Herald
GM Hints at New Affordable Next-Gen EV Made in U.S.
General Motors (GM) has announced plans to develop and build an affordable next-gen electric vehicle (EV) at its Fairfax, Kansas, plant. While Chevy's new Bolt EV is entering production by the end of the year at the same Kansas facility, it's unclear whether the up-and-coming next-gen model is part of the Bolt family or a new lineup. GM's president, Mark Reuss, said in October the 2027 Bolt EV's "price isn't final yet," while adding "it [2027 Bolt EV] will be priced only slightly higher than the 2023 Bolt, which started at $28,795, and it will just be one member of a family on the Bolt, including an even lower cost option," according to GM Authority. The average transaction price (ATP) for a new EV in May was $57,734, Kelley Blue Book reports. Chevy's 2027 Bolt will be North America's first Ultium-based model with lithium iron phosphate (LFP) batteries, helping the model sell at lower prices than ones with nickel manganese cobalt batteries. Despite details on the 2027 Bolt remaining limited, its release around mid-2026 means that Chevy is likely months away from revealing the model. News of the affordable EV in development arrives after GM revealed plans to invest around $4 billion in U.S. production for gas-powered and electric models over the next two years. Domestic manufacturing investments should help GM mitigate the impacts of President Trump's tariffs, which are projected to cost the automaker up to $5 billion in 2025. GM's $4 billion investment will allow the company to manufacture over two million vehicles in the U.S. annually. In addition to making a next-gen affordable EV and the 2027 Chevy Bolt, GM's Fairfax, Kansas plant will support the gas-powered Chevy Equinox's production starting in mid-2027. Equinox sales increased 30% year-over-year during Q1. Separate GM U.S. production facilities include Orion Assembly in Orion Township, Michigan, and Spring Hill Manufacturing in Spring Hill, Tennessee. Orion Assembly will take on gas-powered full-size SUVs and light-duty pickups, while Spring Hill Manufacturing will focus on the Chevy Blazer, the Cadillac LYRIQ and VISTIQ EVs, and the Cadillac XT5. GM's Factory ZERO in Detroit-Hamtramck, Michigan, will handle the Chevy Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV pickup and SUV production. GM also confirmed plans last month to commercialize lithium manganese-rich (LMR) prismatic battery cells for future GM electric trucks and full-size SUVs. These cells will provide a 33% higher energy density compared to the best lithium iron phosphate (LFP)-based cells at a comparable cost. The new battery cells are expected to be a staple of the automaker's electric truck lineup, with over 400 miles of available range, while optimizing savings over their high-nickel pack counterpart, which currently supplies segment-leading range. Following GM's most recent production announcement, the biggest question is whether its next-gen affordable EV will be part of the Chevy Bolt EV family or a new lineup. We also don't know whether the 2027 Bolt EV, which is returning after a three-year hiatus, will revive its hatchback configuration or if the model will adopt crossover styling reminiscent of its EUV version. Still, it's clear that GM's manufacturing strategy is prioritizing affordability in the EV segment and cost mitigation amid tariff policies. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
13-06-2025
- Automotive
- Yahoo
GM weighs tariffs, EV demand, factory flexibility as it moves some production to U.S.
For years, General Motors had turned to Mexico to reduce assembly costs for many lower-priced vehicles. Now it's spending $4 billion to move some of that production to the U.S. starting in 2027, as President Donald Trump's tariffs and evolving consumer demand changed the calculus. GM's plan to build more gasoline-powered crossovers, pickups and SUVs at three U.S. plants gives the automaker more manufacturing flexibility for American consumers, who haven't switched to electric vehicles as fast as once anticipated. General Motors is spending $4 billion at three U.S. assembly plants as it moves some vehicle production from Mexico and increases output of some gasoline-powered models in response to customer demand. Investment Chevrolet Blazer Chevrolet Equinox Chevrolet Silverado/GMC Sierra Chevrolet Silverado Source: General Motors And it helps fill underused U.S. assembly plants, a key priority for the UAW, which has supported Trump's tariffs as a tool to encourage domestic auto manufacturing. 'It respects the tariff issue, but it is not driven entirely by the tariff issue,' said Stephanie Brinley, associate director of AutoIntelligence for S&P Global Mobility. The fact that GM won't start building the vehicles in the U.S. for two years underscores the industry's message to the White House that production changes can't happen quickly, Brinley said. And with a longer runway for gasoline engines as EV demand builds gradually, GM will need to invest to keep its internal combustion lineup fresh. After already spending billions of dollars to prepare an assembly plant in suburban Detroit for electric pickup production, GM now plans to build gasoline-powered trucks there instead. Orion Assembly will be a relief valve for other high-volume factories, including GM's SUV plant in Arlington, Texas, that are running near capacity. 'Automakers are thinking about more than one thing when they make sourcing decisions that are expected to last for a few life cycles,' Brinley said. GM's new $4 billion investment will be shared among Orion Assembly, Fairfax Assembly in Kansas and Spring Hill Manufacturing in Tennessee. The automaker did not specify how much each plant would get, but sources told Automotive News affiliate Crain's Detroit Business that roughly half the amount is earmarked for Orion. Sign up to get our afternoon video email. The video focuses on a new topic in the news each day. 'We believe the future of transportation will be driven by American innovation and manufacturing expertise,' GM CEO Mary Barra said in a June 10 statement. 'Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs.' GM will expand production of light-duty full-size gasoline pickups and SUVs to Orion Assembly, which has been down for retooling since the first-generation Chevrolet Bolt ended in late 2023. GM had delayed its timeline for the plant to reopen multiple times as EV demand stagnated. 'We had planned for that to be a big EV plant as we were thinking about rapid expansion of electric vehicles, and clearly we haven't seen that happen,' GM CFO Paul Jacobson said June 11 at a Deutsche Bank automotive investor conference. 'This is a great example of how we can pivot, how we can adjust, how we can be resilient in the face of an environment that's changing around us,' he said. The Kansas plant will make the gasoline Chevy Equinox compact crossover, while Spring Hill will become the new home of the midsize Chevy Blazer now made in Ramos Arizpe, Mexico. A company source told Automotive News that production of the gasoline-powered Blazer will end in Mexico, while Equinox production will continue there for other markets. The UAW celebrated GM's investment as 'a turning point' in its advocacy to bring auto jobs back to the U.S. from Mexico and other lower-cost countries. Want to keep up with the latest product planning news? Go to Automotive News' regularly updated database of product plans for brands that sell in the United States. Future Product Pipeline >5-year product timelines by brand > 'The writing is on the wall: the race to the bottom is over,' UAW President Shawn Fain said in a statement. 'We have excess manufacturing capacity at our existing plants, and auto companies can easily bring good union jobs back to the U.S. They can prove the naysayers wrong by investing in our communities and putting workers before corporate greed. GM is showing that it can be done.' GM's U.S. factory investment comes as the auto industry navigates the vehicle import tariffs Trump enacted in April. GM has said the tariffs will add $4 billion to $5 billion in costs this year and lowered the company's full-year earnings guidance as a result. In recent weeks, GM has said it will increase U.S. production of full-size pickups that also are built in Canada and Mexico. The automaker likewise will cut production of the trucks in Oshawa, Ontario. With the latest investment, GM said it will have capacity to build more than 2 million vehicles annually in the U.S. The $4 billion is in addition to $888 million it's spending to build more V-8 engines at a plant in New York. Fairfax Assembly is currently offline for retooling to build the next-generation Bolt EV starting later this year, but that had been the factory's only assigned product after GM discontinued the Chevrolet Malibu sedan and Cadillac XT4 compact crossover. GM said the plant also is slated to build future low-priced EVs. The automaker already uses a similar approach at Spring Hill and will assemble the Blazer alongside both gasoline and electric Cadillac crossovers. 'The idea that the Blazer and the Equinox EVs were going to replace volume of the gas-powered versions is a bit premature, and they're rectifying that situation by building more of them,' said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. 'Having flexible plants will help all automakers over the next decade or so. This is going to be a drawn-out transition, and many of the manufacturers did not plan for that.' Jacobson said investing in existing U.S. plants with excess capacity is a more efficient use of capital than building new factories. 'That optionality is really important and critical for us as we move forward, being able to respond to where EV demand is going to be,' he said. Have an opinion about this story? 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