General Motors (GM, Financial) is shifting gears again—and this time, it's not about EVs. In a move that signals where consumer demand is actually showing strength, GM said it will start producing the Cadillac Escalade, along with additional volumes of the Chevrolet Silverado and GMC Sierra light-duty pickups, at its Orion Assembly plant in Michigan. The transition begins in early 2027. All three models are currently built in other states, but GM is doubling down on U.S.-based gas-powered production as part of its $4 billion investment plan announced last month.
Originally slated to become a fully electric vehicle facility, the Orion plant's new role reflects how GM is recalibrating. With EV sales trailing prior projections, the automaker appears to be rebalancing its lineup to meet what it's calling “continued strong customer demand” for full-size gas trucks and SUVs. The Silverado and Sierra will continue to roll off the line in Fort Wayne, Indiana, while Orion will serve as a second production hub. As for the Escalade, it will move from Arlington, Texas—further consolidating operations near GM's Detroit headquarters.
This strategy update also comes against the backdrop of shifting trade dynamics. President Trump's 25% tariffs on imported cars and auto parts, implemented earlier this year, may have made domestic manufacturing more attractive. And while GM hasn't walked back its longer-term EV vision—originally targeting 2035 for a fully electric lineup—it's becoming clear that flexibility could be key. For now, GM seems focused on keeping its bestsellers in motion and its factories at home.
