By Nora Eckert and David Shepardson
Detroit (Reuters)-General Motors said on Tuesday that it will move the production of the Cadillac Escalade to a Michigan assembly factory, while the new capacity adds gas-driven Chevrolet Silverado and GMC Sierraa Light Pickups in the same facility.
The production shifts are part of the $ 4 billion investment plan, announced in June at three American facilities in Michigan, Kansas and Tennessee, a movement that expands the production of trucks and SUVs from gasoline.
The Detroit Giant and many of his American competitors have withdrawn from some goals around the production of electric vehicles, because the demand was weaker than expected. GM's continuous investments in vehicles such as the Sierra and Escalade call his plan to question the production of gas cars and trucks by 2035.
The Escalade is currently produced in Arlington, Texas, in addition to other large SUVs such as the GMC Yukon, Chevrolet Suburban and Chevy Tahoe. The production in Arlington is expected to remain consistent after the Escalade moves to Michigan, a GM spokesperson said.
The automaker will add the production of the Silverado and Sierra trucks in the Orion Township factory, Michigan, in addition to existing production in Fort Wayne, Indiana. The gasoline-driven trucks and SUVs are among the biggest money makers in GM.
GM told Reuters that the movements “would help meet the constant demand of the customer.”
GM said that the early 2027 would start producing the SUVs and light pick-up trucks in the Orion-Assemblage factory. Orion's assembly was previously planned to build electric trucks from next year.
The investment news from June was welcomed by the White House, which imposed significant rates on imported vehicles under pressure from car manufacturers to increase production in the United States.
President Donald Trump signed this month of tax and budget legislation that eliminates fines for absence to comply with the average fuel consumption rules, a movement that makes it easier to build more gas-driven vehicles.
GM previously paid $ 128.2 million in fines for 2016 and 2017 for non -compliance with the requirements. The radical tax and budget legislation that was approved by the congress at the beginning of July will also eliminate the $ 7,500 tax credits for buying or leasing new electric vehicles on 30 September, which is expected to show EV growth.
(Reporting by Nora Eckert in Detroit, David Shepardson in Washington; editing by Chris Reese and Cynthia Osterman)
