GM Is Cutting EV Production Plans To Build More Trucks And SUVs

It’s no secret that demand growth for EVs is slowing down, and it’s not going to be the big sensation of sales it was once thought to be. Plenty of automakers are shifting plans, either by delaying EVs that are already deep in development, or adjusting planned EV platforms to be adopted into hybrid applications to meet that growing market segment demand. Now it’s General Motors that is pivoting away from plans to build more EVs at its Michigan Orion assembly plant in favor of gas-powered pickups and large SUVs like the Chevrolet Silverado 1500 and Cadillac Escalade.

Technically, GM sort of let this slip back in June, when the Orion plant was listed among two other GM facilities for gas vehicle production expansion, only the cutting of planned EV production was left out until now.

“GM will begin production of the Cadillac Escalade, as well as the Chevrolet Silverado and GMC Sierra light-duty pickups at Orion Assembly in early 2027 to help meet continued strong customer demand,” GM spokesperson Tara Kuhnen told the Detroit Free Press. “GM is proud to call Michigan home, and these moves will further strengthen our manufacturing footprint.”

The New Bolt Should Be Safe

This announcement comes after a year of constant delays in starting EV assembly at Orion, as the writing must have already been on the wall that the market was shifting away from its early EV sales momentum. This move likely has no impact on GM’s plans for the next-gen Chevy Bolt EV, which is now slated for the 2027 model year and will be assembled in Kansas. It’s unclear which EV models were planned for Orion; it’s possible it was a holdover for expanding Silverado EV and Sierra EV production if demand for those models took off, which hasn’t materialized yet.

GM also clarified that the Orion assembly expansion is alongside the current Fort Wayne production of trucks and SUVs, so they must expect a lot more volume in the future. For now, the Orion plant is only building battery modules that are shipped to GM’s Factory Zero plant for EV models, employing around 200 people for now.

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EV Fund Money Now Going To Gas Models

The move also puts GM under the spotlight by some for using grant money to expand Orion for EVs, which it now isn’t going to build. The company claims it has invested $4 billion across three facilities, including Orion already. However, Michigan Governor Gretchen Whitmer has already come out in support of GM’s swap, as the move should offer plenty of job security for the facility.

“We don’t care what you drive – gas, diesel, hybrid, or electric – as long as it’s made in Michigan,” the Governor said.

According to GM, sales of its large trucks and SUVs are mostly taking off, with GMC Yukon sales climbing 22% in the first half of 2025. Now that Washington has passed new legislation effectively ending fines for emissions violations, automakers could be keen to ramp up big V8 truck and SUV production. They’ve been the cash cows for Detroit automakers for the better part of 20 years, and with EPA regulations essentially neutered for at least a few years, we wouldn’t be surprised to see production shift into overdrive.

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CarBuzz reached out to GM for clarification and comment on all this, especially since the automaker is pausing production at its plant in Mexico. It’s clear GM is looking at recent market changes and is focused on profitability, facing the drop of the federal EV tax incentive, new tariffs raising prices on almost all models, and slowing EV demand plus sales growth of its gas models.

Source: The Detroit Free Press; Automotive News