Soft Demand For EVs Spark GM Assembly Move From Texas

July 16, 2025 – General Motors announced as part of its $4 billion U.S. investment plan that it will relocate production of the Cadillac Escalade from its Arlington Assembly plant in Texas to the Orion Township Assembly plant in Michigan, starting in early 2027. This strategic move aims to meet sustained consumer demand for gas‑powered SUVs and light‑duty trucks, including the Silverado and Sierra, which will also be built at Orion.

Despite the shift, production at Arlington—which employs over 5,000 workers—will continue with other large SUVs, such as the Chevrolet Tahoe, Suburban, and GMC Yukon. GM emphasizes that the realignment strengthens its domestic manufacturing footprint and better aligns capacity with robust market demand, a key driver of profit margins in gas vehicles.

This realignment follows softer-than-expected electric vehicle (EV) demand and utilizes Michigan’s Orion plant—originally planned for EV production—to house high‑margin, gas‑powered models instead. The pivot raises questions about GM’s pledge to cease gasoline-powered vehicle production by 2035.

The broader investment bolsters U.S. vehicle manufacturing capacity above two million units annually, with enhancements also planned for facilities in Kansas and Tennessee.