General Motors announced plans this week to expand its production of gas-powered vehicles, including SUVs and pickup trucks, at its Orion Assembly plant in suburban Detroit—signaling a notable shift in strategy as demand for electric vehicles cools.
Starting in early 2027, GM will begin manufacturing the Cadillac Escalade, Chevrolet Silverado, and GMC Sierra light-duty pickups at the retooled Michigan facility. The Escalade is currently built in Arlington, Texas, while the Silverado and Sierra are produced in Fort Wayne, Indiana—both of which will continue operations.
The move comes as part of GM’s broader $4 billion investment in U.S. manufacturing, a plan unveiled in June. It also follows President Donald Trump’s implementation of 25% tariffs on imported cars and key auto parts, which has encouraged domestic production.
Originally slated to be GM’s second plant dedicated solely to electric vehicles, Orion Assembly is now pivoting to bolster output of combustion-engine models in response to what the company calls “continued strong customer demand.”
This development contrasts with GM CEO Mary Barra’s 2021 announcement that the company aimed to exclusively offer zero-emission vehicles by 2035. At the time, she called the shift “critical” for reducing tailpipe emissions, which she said accounted for 75% of the company’s carbon output.
That 2035 target, however, was described as an “aspiration”—not a binding commitment.
Former GM sustainability officer Dane Parker had once projected that EVs would represent the “successful business model of the future,” citing the company’s resources and engineering expertise as key advantages in overcoming challenges in electrification.
But as CNBC recently reported, the broader EV market hasn’t lived up to industry hype. Automakers like Ford, Volkswagen, and Mercedes-Benz are now scaling back or delaying their EV plans in light of underwhelming consumer demand. Wall Street’s earlier enthusiasm for electrification has cooled, and legacy automakers are once again emphasizing “consumer choice.”
With this strategic pivot, GM appears to be aligning itself with that new industry reality—doubling down on the gas-powered vehicles that remain top sellers for American consumers.
