GM Chevrolet abandons electric cars to expand pickup truck production in the US

In a significant strategic shift, the General Motors (GM) announced plans to roll back part of its electrification strategy in the United States.

GM Chevrolet abandons electric cars to expand pickup truck production in the US

According to Autoblog, the automaker will transfer production of the luxury SUV Cadillac Escalade to the Orion Assembly plant in Michigan. In addition, the unit will increase the production capacity of gasoline pickup trucks Chevrolet Silverado e GMC Sierra.

The Orion Assembly plant, which was initially intended to be an electric vehicle production hub, will now have an expanded focus on gasoline-powered models from 2027. The Escalade is currently produced in Arlington, Texas, along with GM’s other full-size SUVs.

The decision to supplement Silverado and Sierra production at Orion in addition to existing capacity in Fort Wayne, Indiana, reflects a GM’s adaptation to market demand.

This announcement comes about a month after GM revealed a multibillion-dollar investment to support national production of both combustion and electric vehicles. On June 10, the automaker confirmed a contribution of US$4 billion over the next two years to reconfigure facilities such as Orion Assembly, Fairfax (Kansas) and Spring Hill (Tennessee) to produce future vehicles.

The electric car scenario: slowdown and readjustments

The change of plans for Orion is mainly due to slowdown in demand for electric vehicleswhich caused delays in the resumption of EV production. As a result, GM designated the plant Factory Zeroin Detroit, as the unit dedicated to manufacturing electric vehicles such as the Chevrolet Silverado EV, GMC Sierra EV, Hummer EV and Cadillac Escalade IQ.

A Orion factory, in turn, will continue to manufacture battery modules for large electric vehicles produced at Factory Zero.

In a statement to Detroit Free Pressa GM spokesperson said the Orion changes are intended to “meet continued strong customer demand” for gasoline-powered pickup trucks and SUVs. “GM is proud to have Michigan as its headquarters, and these changes will further strengthen our industrial presence,” added the spokesperson.

What do you think of this change in GM’s strategy? Do you believe this is a sign that combustion vehicles will still have a long reign, or just a temporary adjustment? Share your opinion in the comments!