General Motors confirmed that the GM Orion plant in Michigan will not manufacture electric vehicles. Instead, the factory will produce internal combustion engine (ICE) models starting in early 2027. These include the Cadillac Escalade, Chevrolet Silverado, and GMC Sierra light-duty pickup trucks.
GM originally assigned the Orion plant to produce electric versions of the Silverado and Sierra. However, the company paused those plans in 2023 due to lower-than-expected demand for EVs. As a result, production never resumed, and the transition to EVs never began.
Historically, the Orion facility built models like the Chevrolet Sonic and Bolt EV, contributing to GM’s early EV push. Currently, the site employs around 200 workers. GM plans to grow that number when ICE production scales up.
Tara Kuhnen, a GM spokesperson, stated that the shift supports “continued strong customer demand.” She emphasized GM’s pride in its Michigan roots and said this decision strengthens its manufacturing base in the region.
In June, GM announced a $4 billion investment for Orion, Fairfax (Kansas), and Spring Hill (Tennessee). These plants will receive upgrades to increase ICE vehicle output, not EVs.
Back in 2022, GM accepted $480 million in Michigan state funding to expand EV production at Orion. The Strategic Outreach and Attraction Reserve (SOAR) fund issued the support, expecting the factory to add 3 million square feet for full-size electric truck assembly.
GM also requested $120 million to support a nearby battery plant in Lansing. This plant is part of a joint venture with LG Energy Solution under the name Ultium LLC. Combined, the state awarded $600 million, with the expectation of creating over 1,800 jobs by 2030.
The Michigan Department of Treasury completed the transfers by September 2023. Ultium Cells received its share two months earlier.
Although the Orion plant will not assemble EVs, GM already completed expansion work there. The facility now builds battery modules used in GM EVs produced at Factory Zero in Detroit.
Under the SOAR agreement, GM must still fulfill its commitments. The automaker is required to generate 1,840 jobs at Orion by 2030 to maintain compliance with the public funding terms.
