GM's Electric Vehicle Dream Factory is Transitioning into a Gas Power Facility | Carscoops

      Despite securing nearly half a billion in state funds for electric vehicle production, GM continues to adhere to its incentive agreement.

      Low sales figures for GM’s electric pickup trucks have compelled the automaker to adjust its plans.

      Beginning in 2027, the Orion Assembly plant will commence production of the Escalade, Silverado, and Sierra.

      GM has been awarded $480 million in state grants to transform Orion into an EV assembly hub.

      General Motors had ambitious plans to convert its Orion Assembly plant into a site dedicated solely to electric vehicles, with an investment of approximately $4 billion. Following the completion of the previous-generation Bolt and Bolt EUV production, the intention was to transition to mass production of the electric Chevrolet Silverado EV and GMC Sierra EV. However, this has not materialized, and it is now confirmed that three of GM’s largest gas-consuming models will be manufactured at the location instead.

      As we reported in June, GM has completely altered its approach at Orion. This week, the company announced that it will begin assembling the Cadillac Escalade, Chevrolet Silverado, and GMC Sierra at the facility in 2027. No explanation has been provided for the 2027 production start date, but it likely relates to the necessary re-engineering of the plant and the installation of new equipment to facilitate the manufacture of these gas-powered vehicles.

      According to a spokesperson for GM, the decision to shift production of these popular models will “help meet continued strong customer demand.” The automaker also expressed pride in being based in Michigan, stating that these actions will enhance their manufacturing presence.

      Currently, the Escalade is produced alongside the Chevrolet Tahoe, Suburban, and GMC Yukon at a facility in Arlington, Texas. Meanwhile, the GMC Sierra and Chevrolet Silverado are manufactured at GM’s Fort Wayne Assembly site in Indiana, as well as locations in Mexico and Canada. The production planned for Orion will be in addition to existing operations, as reported by the Detroit Free Press.

      GM's electric vehicle plans currently appear to be stalled.

      GM initially pledged to make the Orion site an EV center after receiving $480 million in state funding through the Strategic Outreach and Attraction Reserve Fund. This initiative aimed to expand the plant for the production of more battery-electric vehicles. While some have raised concerns since no EVs will actually be assembled at the plant, the Michigan Economic Development Corp (MEDC) states that the company remains compliant with the grants it has received.

      “GM remains in compliance with their incentive agreement and we are thankful for their ongoing commitment to creating jobs and investing here in Michigan, whether at the Lake Orion facility or at Factory Zero,” said MEDC Vice President of Communications Courtney Overberg Martinez.