GM skips EVs to expand pickup, Escalade production in Michigan
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
Investing in Bintulu Port Holdings Berhad (KLSE:BIPORT) five years ago would have delivered you a 46% gain
Explore Bintulu Port Holdings Berhad's Fair Values from the Community and select yours Stock pickers are generally looking for stocks that will outperform the broader market. And the truth is, you can make significant gains if you buy good quality businesses at the right price. For example, long term Bintulu Port Holdings Berhad (KLSE:BIPORT) shareholders have enjoyed a 29% share price rise over the last half decade, well in excess of the market return of around 2.2% (not including dividends). Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Bintulu Port Holdings Berhad achieved compound earnings per share (EPS) growth of 2.6% per year. This EPS growth is slower than the share price growth of 5% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Bintulu Port Holdings Berhad's TSR for the last 5 years was 46%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective While the broader market lost about 0.2% in the twelve months, Bintulu Port Holdings Berhad shareholders did even worse, losing 13% (even including dividends). Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 8% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Bintulu Port Holdings Berhad that you should be aware of before investing here. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Business Upturn
5 minutes ago
- Business Upturn
Indian markets likely to open in red, recover from steep early fall as Gift Nifty pares losses
Indian markets may stabilise despite tariff shock, as Trump envoy's Putin meet hints at diplomatic thaw. By Arunika Jain Published on August 7, 2025, 08:03 IST Last updated August 7, 2025, 08:04 IST Indian stock markets are likely to open with limited downside today, as the initial panic from a surprise US tariff announcement eased in early trade. Gift Nifty, which had opened nearly 90 points down, recovered to trade 38 points lower, before settling 63 points down at 7:57 AM IST. The partial rebound indicates a measured reaction from investors amid overnight geopolitical developments. The weakness was triggered by a White House order issued Tuesday evening, which imposed an additional 25% tariff on imports from India, effective August 27. The order cited India's continued direct or indirect import of Russian Federation oil as the reason, linking it to the ongoing national emergency declared over Russia's actions in Ukraine. However, the sharp drop was contained—possibly due to early diplomatic signals from former US President Donald Trump, who posted on social media that his Special Envoy, Steve Witkoff, held a 'highly productive' meeting with Russian President Vladimir Putin. Trump called it 'great progress,' and noted that European allies were briefed on the outcome, with consensus emerging that 'this war must come to a close.' While Trump's statements are unofficial and hold no current policy authority, the timing of the post—following the tariff order—offered markets a semblance of diplomatic hope, helping limit downside in Gift Nifty. Markets will now await clarity on India's response to the tariff move and any further geopolitical developments through the week. Disclaimer: This article is for informational purposes only. It is based solely on public and media inputs provided and does not constitute investment advice or a recommendation of any kind. Ahmedabad Plane Crash Arunika Jain, a graduate in Mass Communication, brings a fresh perspective to the world of journalism. Arunika has a passion for writing finance and corporate news at You can write to her at [email protected]
Yahoo
16 minutes ago
- Yahoo
Bloom Energy (BE) Rides AI Data Center Boom but Faces Cash Burn Risks
Bloom Energy Corporation (NYSE:) is one of the . On August 1st, BMO Capital analyst Ameet Thakkar raised the price target on the stock to $33.00 (from $18.00) while maintaining a 'Market Perform' rating. Bloom Energy reported its second quarter 2025 financial results on July 31st, which was the third straight quarter of quarterly record revenue and profits for the company. The firm beat revenue estimates ($401.2M versus the consensus estimate of $376.24M). '2Q results came in ahead of our estimates. Importantly, service gross margins improved further, which given large service backlog is positive as margins here have historically been weak. Order momentum within data center appears strong as evidenced by recent Oracle announcement and potential role in Crusoe/Tallgrass data center project in WY driving shares +39% since 7/23/25 announcement." A modern skyscraper illuminated in orange and blue, representing the energy sector of the US equity market. "That said, 2Q and YTD cash burn again significantly negative and with BE shares trading at 37x and 22x our 2026 and 2027 EBITDA estimate, we remain Market Perform. Raising target to $33.' Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers. While we acknowledge the potential of BE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Must-Watch AI Stocks on Wall Street and Disclosure: None. Sign in to access your portfolio
