General Motors is changing course. Faced with a palpable slowdown in electric vehicle (EV) sales growth, the U.S. auto giant is reorienting its plans by renewing focus on the vehicles North American consumers demand: full-size gas-powered pickup trucks and SUVs.
The Orion Assembly plant in Michigan, set to be dedicated to electric models like the Silverado EV and Sierra EV, will instead begin producing the Chevrolet Silverado 1500, GMC Sierra and Cadillac Escalade starting in 2027. GM confirmed as much to the Detroit Free Press, officially ending rumours that have persisted since June.
Responding to stagnating demand
While investments and announcements surrounding EVs were omnipresent in recent years, GM acknowledges that the market is changing. The initial enthusiasm has waned and EV sales are not taking off at the expected pace. As a result, the company will invest its resources where it truly generates profits, as shown by the sales increases of the GMC Yukon (+22 percent in the first half of 2025).
The Orion plant will continue to produce battery modules for the Factory Zero plant for now, but its future is now focused on internal combustion vehicles. This is despite the public subsidies initially granted for EV production.
The Bolt EV still on the agenda
The next Bolt EV, planned for 2027, is expected to be assembled at the Fairfax plant in Kansas. GM is keen to point out that this shift will not affect its development. The manufacturer says it is maintaining its commitment to EVs, but without abandoning internal combustion models, especially since new federal laws are reducing penalties for polluting emissions.
Political support, despite the reversal
Michigan Governor Gretchen Whitmer supported GM's decision, stating: "No matter what you drive – gas, diesel, hybrid, or electric – as long as it's made in Michigan." The message is clear: local employment takes precedence over ideology.