GM outlines $4 billion plan to expand production of gas trucks and SUVs
said on Tuesday it will move production of the
Cadillac Escalade
to a
Michigan assembly plant
, while adding new capacity for gas-powered
Chevrolet Silverado
and
GMC Sierra
light-duty pickups at the same facility. The production shifts are part of GM's $4 billion investment plan announced in June at three U.S. facilities in Michigan, Kansas and Tennessee, a move that expands production of gasoline-powered trucks and SUVs.
The Detroit giant and many of its U.S. competitors have pulled back on some goals around production of electric vehicles as demand has been weaker than expected. GM's continued investment in vehicles like the Sierra and Escalade calls into question its plan to end the production of gas-powered cars and trucks by 2035.
The Escalade is currently produced in Arlington, Texas, alongside other large SUVs such as the GMC Yukon, Chevrolet Suburban and Chevy Tahoe. Production at Arlington is expected to remain consistent after the Escalade moves to Michigan, a GM spokesperson said. The automaker will be adding production of the Silverado and Sierra trucks at its Orion Township, Michigan factory, in addition to existing production in Fort Wayne, Indiana.
The gasoline-powered trucks and SUVs are among GM's biggest money makers. GM told Reuters the moves would "help meet continued strong customer demand." GM said it will begin manufacturing the SUVs and light-duty pickup trucks at its Orion Assembly plant in early 2027. Orion Assembly was previously slated to build electric trucks starting next year. The June investment news was welcomed by the White House, which has imposed significant
tariffs on imported vehicles
to pressure automakers to increase production in the United States.
President Donald Trump this month signed tax and budget legislation that eliminates fines for failures to meet Corporate Average Fuel Economy rules, a move that makes it easier to build more gas-powered vehicles.
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