Orion Assembly to Host Key Gas-Powered Models
General Motors announced it will begin producing its popular gas-powered Cadillac Escalade, Chevrolet Silverado, and GMC Sierra light-duty trucks at its Orion Assembly plant in Michigan starting in early 2027. The decision expands GM’s truck manufacturing capacity to meet ongoing strong demand for internal combustion vehicles.
The Escalade, currently assembled in Arlington, Texas, will see production relocated, while Silverado and Sierra trucks, now built in Fort Wayne, Indiana, will also be produced in Michigan. Fort Wayne will continue operations, but Orion’s new role will significantly boost total output of these high-demand models.
Tariffs and Consumer Preferences Influence Shift
The move comes after President Donald Trump’s imposition of 25% tariffs on imported vehicles and auto parts earlier this year. In response, GM is doubling down on U.S. production to mitigate cost impacts and reinforce its domestic manufacturing footprint.
The decision also reflects evolving consumer behavior. GM had previously committed to converting Orion into a dedicated electric vehicle (EV) plant, supporting a broader corporate goal of selling only EVs by 2035. However, slower-than-anticipated EV adoption has led the automaker to revise its strategy, favoring flexibility and responsiveness to gas-powered vehicle demand.
Investment Bolsters U.S. Auto Industry
GM’s updated plans build on a $4 billion investment in U.S. manufacturing announced in June, which was aimed at fortifying its production base in response to trade policy shifts. The company’s focus on ramping up output at Orion Assembly signifies not only a commitment to Michigan but also an adaptation to geopolitical realities and consumer trends.
By increasing production at Orion, GM can better shield its supply chain from tariff-related volatility while supporting job growth and industrial capacity in its home state. The suburban Detroit plant will be outfitted to handle both current and future product lines as market conditions evolve.
EV Goals Adjusted but Not Abandoned
While GM is expanding gas-powered vehicle production, it has not walked away from its EV ambitions. CEO Mary Barra’s original 2021 pledge remains a long-term objective, but the timeline and implementation now reflect a more pragmatic approach.
Orion Assembly had once been envisioned as the automaker’s second all-EV facility in the U.S., following Factory ZERO in Detroit. The updated role for Orion illustrates how automakers are navigating the uncertain path between regulatory pressures and market realities, balancing investment in clean technology with the need to sustain profitability through combustion vehicle sales.
