GM to Move Truck Production to Michigan, Idles Mexico Plant as Part of Evolving Strategy

GM will build Silverado, Sierra, and Escalade at Orion Assembly in Michigan from 2027 onward.
Production pauses at GM’s Silao, Mexico truck plant extend across July and August.
Pickup trucks remain GM’s top U.S. sellers, driving manufacturing strategy shifts.

General Motors plans to build its Chevrolet Silverado, GMC Sierra and Cadillac Escalade models at Orion Assembly in Michigan starting in 2027. The production plant was previously intended for electric vehicles but is now earmarked for gasoline-powered models.

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The automaker confirmed on July 15 that Orion Assembly, located about 55 kilometres north of Detroit, will produce the full-size pickups and SUVs. The decision came after GM’s recent announcement of a $4 billion investment to expand internal combustion vehicle manufacturing across three U.S. plants, including Orion, Fairfax Assembly in Kansas and Spring Hill Manufacturing in Tennessee.

In a statement, GM said the additional Michigan production would help meet ongoing demand for pickups and SUVs, while also reinforcing its manufacturing presence in the state and country.

At the same time, GM’s assembly complex in Silao, Mexico — the site building Silverado and Sierra trucks — is undergoing several weeks of downtime. The plant was paused for the first two weeks of July and is scheduled to halt operations again the weeks of August 4 and 11, according to two people familiar with the matter. GM described these shutdowns as part of routine efforts to optimize production, though multiple weeks of idling is uncommon for facilities assembling high-volume pickup models.

Beyond Silao, GM manufactures Silverado and Sierra trucks in Fort Wayne, Indiana, Flint, Michigan and Ontario. The Escalade continues production in Arlington, Texas, alongside the Chevrolet Tahoe, Suburban and GMC Yukon.

Orion Assembly, which has been largely idle since late 2023, was initially expected to begin building electric Silverado and Sierra pickups. Those plans were delayed twice before GM redirected the site to bolster output of gasoline-powered trucks. The plant currently employs about 200 people producing battery modules for EVs built at GM’s Factory Zero in Detroit.

The Silverado and Sierra remain GM’s most popular vehicles in North America.

Source: Automotive News

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