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GM to Build Escalade, Silverado and Sierra at Orion Assembly in 2027

GM is redirecting part of its $4 billion U.S. investment toward gas-engine models to meet surging demand set off by recent import tariffs.

Overview

  • GM will convert its Orion Assembly plant to produce the Cadillac Escalade full-size SUV and Chevrolet Silverado and GMC Sierra light-duty pickups from early 2027 instead of electric vehicles.
  • This move follows GM’s June announcement of a $4 billion investment across three U.S. facilities—including Orion, Fairfax (Kansas) and Spring Hill (Tennessee)—to expand internal combustion engine output.
  • Escalade production will shift from Arlington, Texas, and additional Silverado and Sierra capacity complements ongoing operations at Fort Wayne, Indiana.
  • CEO Mary Barra cited slower-than-expected electric vehicle adoption and strong consumer preference for gas-powered models as drivers of the strategy revision.
  • Retooling domestic plants also helps GM avoid 25 percent tariffs on imported vehicles and auto parts imposed by President Donald Trump.