General Motors To Build Escalade, Silverado, Sierra At Michigan Plant In $4B Shift From EVs

General Motors said it will shift production of the Cadillac Escalade to its Orion Township plant in Michigan and add capacity for gasoline-powered Chevrolet Silverado and GMC Sierra pickups. 

The changes are part of a $4 billion investment across Michigan, Kansas and Tennessee aimed at expanding high-margin combustion vehicle output amid softer demand for electric vehicles (EVs).

The Escalade is currently built in Arlington, Texas, which will continue assembling other large SUVs, Reuters reported.

The Silverado and Sierra will also be produced at Orion beginning in early 2027, supplementing existing output from Fort Wayne, Indiana. 

Orion was previously slated to manufacture electric trucks starting next year.

Meanwhile, GM is hitting the brakes at its Silao plant in Mexico, which makes the Silverado and Sierra. 

The facility was already shut down for the first half of July and is reportedly expected to pause again in August.

While GM confirmed scheduled downtime, it did not provide specific dates, calling the shutdowns part of a standard production optimization process.

The pause follows a major safety recall last month and comes amid continued supply chain pressure from renewed tariffs under U.S. President Donald Trump and China’s export restrictions on rare-earth materials used in auto electronics.

GM sold 278,599 Silverados and 166,409 Sierras in the first half of 2025, marking year-on-year increases of 2% and 12%, respectively. 

The company told Reuters the production shifts are meant to meet "continued strong customer demand." 

Policy changes under the Trump administration, including the repeal of corporate average fuel economy (CAFE) penalties and electric vehicle tax credits, are also making it easier for automakers to focus on gasoline models.

On Stocktwits, retail sentiment for GM was ‘bearish’ amid ‘low’ message volume.

GM’s stock has risen 2.6% so far in 2025.

See also: Zeekr Enters $2.4B Deal With Chinese Carmaker Geely To Go Private

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