GM is Boosting Production of its Chevrolet Silverado and GMC Sierra Pickups and Cutting Back on Future EV Production Plans

GM is shifting away from its promised all-electric lineup and moving to shore up profits by increasing production of its popular gas-powered models. General Motors is scrapping plans to build electric vehicles at its Orion Assembly plant north of Detroit, and instead will build more Cadillac Escalades, Chevrolet Silverados and GMC Sierras in Orion. The Cadillac Escalade is the top selling luxury full-size SUV in North America and the Silverado and Sierra light-duty pickups sold very well during the first half of 2025. While GM has maintained that it will eventually go all-electric, this latest move is a sign that the automaker is slowing down its aggressive plan. 

GM Focusing on Profit to Drive the Company Forward

The shift toward electric vehicles is incredibly expensive and demand has fallen off since the election of Donald Trump. The new budget bill eliminates most of the tax rebates for buying EVs and that is expected to slow EV sales even further. GM says the added production of its most popular models will help it meet growing demand. The production at Orion is expected to start in 2027. The Chevrolet Silverado 1500 and GMC Sierra 1500 are currently being built in Fort Wayne, Indiana. Production of the trucks is expected to continue in Fort Wayne. 

The Cadillac Escalade is built in Arlington, Texas, alongside the Chevrolet Tahoe and Suburban, as well as the GMC Yukon and Yukon XL. It is expected that by moving the Escalade production to Orion, GM will boost production of the Tahoes, Suburbans and Yukons at Arlington. GM consistently sells the majority of full-size SUVs. Those sales also surged during the first half of 2025. In the past, GM might have moved some of the extra production to Mexico but the threat and uncertainty of tariffs have made that a risky proposition. 

GM Boosting V8 Engine Production

I first reported in May that GM was making its largest investment ever in V8 engines. 

“GM just made its largest investment ever in gas-powered engine production guaranteeing that it will be producing full- sized trucks and SUVs for years to come. The automaker is investing $888 million in the Tonawanda Propulsion plant in Buffalo, NY, to build the next generation of V-8 engines. GM had planned to build electric drivetrains there but is now steering back to more conventional engines, as demand for EVs has slowed. The new V-8s will be used in Chevrolet Silverados, GMC Sierras, Cadillac Escalades, Chevrolet Tahoes, Suburbans and GMC Yukons. The company is already retooling a Flint engine plant to build the same engine, showing that GM believes the future demand is for ICE vehicles not EVs.”

“Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,” said Mary Barra, Chair and CEO. “GM's Buffalo plant has been in operation for 87 years and is continuing to innovate the engines we build there to make them more fuel efficient and higher performing, which will help us deliver world-class trucks and SUVs to our customers for years to come.”

Uncertainty Concerning Michigan’s Grants for the Orion Site

GM has been wrestling with the future of the Orion plant for the last couple of years. GM has invested billions in revamping Orion to build batteries and electric vehicles. It does build batteries at the plant to supply the EV trucks being produced at Factory Zero, the plant located on the border of Detroit and Hamtramck.  However, plans to build EVs at the Orion plant kept being delayed. 

The state of Michigan gave $480 million in state grants to increase battery and EV production at the Orion plant. It is unclear whether the battery production will satisfy the technicalities in that agreement. GM also has an Energy Storage facility at the Orion plant site. 

GM’s Future Appears to be More Realistic About the EV Timeline

GM used to produce the small Chevrolet Bolt at the Orion plant. Years ago, with the state’s help, it was going to be retooled to build the EV pickups. But demand for the pickups never really took off so all of the Chevrolet Silverado EVs, GMC Sierra EVs, HUMMER EVs and SUVs are all still built at Factory Zero. It is unclear how much retooling will have to happen for Orion to start producing Escalades, Silverados and Sierras. However, production won’t get underway until 2027. At one point, CEO Mary Barra said GM would be all EV by 2035. With the announcement about increased ICE vehicle production, that deadline will have to be pushed much further out. 

Chevrolet  Photo

Mary Conway is a professional automotive journalist and has decades of experience specializing in automotive news analysis. She covered the Detroit Three for more than twenty years for the ABC affiliate, in Detroit. Her affection for the Motor City comes naturally. Her father ran a gas station while Mary was growing up, in Wisconsin.

Follow Mary Conway at @MaryConwayMedia and send her car news tips for future stories.