General Motors has made a significant announcement regarding its Orion assembly plant in suburban Detroit. Initially, the plan was to invest $4 billion to expand the plant and retool it for electric vehicle production. However, recent reports suggest that GM may be backtracking on its decision to turn Orion into an EV-only manufacturing hub.
The change in plans could be attributed to various factors, including a decline in demand for electric vehicles, particularly electric pickups. The Trump administration’s stance on EVs and the resulting instability in the automotive industry may also have played a role in GM’s decision to reconsider its strategy.
While GM had previously intended to produce electric Chevrolet Silverado and GMC Sierra pickups at the Orion plant starting in mid-2026, there are now indications that combustion and hybrid vehicles may also be built alongside EVs. This shift in focus raises questions about GM’s commitment to its original plan of exclusively manufacturing electric trucks at Orion.
Furthermore, there have been rumors about GM developing plug-in hybrid powertrains for the GMC Sierra and Chevy Silverado. Although the manufacturer has not officially confirmed these models, it is speculated that they could serve as direct competitors to upcoming extended-range pickups in the market.
GM’s Detroit-Hamtramck Assembly Center, also known as Factory Zero, currently produces electric vehicles such as the GMC Hummer EV, GMC Sierra EV, Chevy Silverado EV, and Cadillac Escalade IQ. The factory was retooled for EV production in 2021 and has not produced any combustion vehicles since then.
One possible reason for GM’s shift in strategy at the Orion plant could be its decision to pull out of a battery manufacturing joint venture with LG Energy. The company has sold its stake in the venture to LG and plans to recoup its investment through the sale of EV battery cells. This development indicates that GM’s initial plans for EV production may not be progressing as expected.
In conclusion, GM’s decision to potentially build combustion and hybrid vehicles alongside EVs at the Orion assembly plant marks a significant shift in its manufacturing strategy. The company’s evolving approach to electric vehicle production reflects the challenges and uncertainties facing the automotive industry in the current market landscape.