GM Shifts Cadillac Escalade Production to Michigan, Boosts Fuel Truck Output

According to Reuters, on July 15, General Motors announced that it will shift the production line of the gasoline-powered Cadillac Escalade to an assembly plant in Michigan. At the same time, the company will increase the production capacity for gasoline-powered Chevrolet Silverado and GMC Sierra light-duty pickups at this plant. This production adjustment is part of GM's $4 billion investment plan unveiled in June, which involves three factories in Michigan, Kansas, and Tennessee, aimed at expanding the output of gasoline trucks and SUVs. Due to the continued sluggish demand in the electric vehicle market, several American automakers, including GM, have scaled back certain electric vehicle production targets. Additionally, GM's ongoing investment in gasoline models such as the Sierra and Escalade raises questions about its plan to completely stop producing gasoline vehicles by 2035. Currently, the Cadillac Escalade is produced at the Arlington plant in Texas, along with other large SUVs like the GMC Yukon, Chevrolet Suburban, and Chevrolet Tahoe. However, a GM spokesperson stated that production at the Arlington plant is expected to remain stable after the Escalade's production is moved to Michigan. GM will also increase the capacity for gasoline Chevrolet Silverado and GMC Sierra trucks at its Orion plant in Michigan, complementing the existing capacity at the Fort Wayne plant in Indiana. GM disclosed to Reuters that this move aims to meet the strong ongoing demand for gasoline trucks and SUVs in the U.S. It is reported that gasoline trucks and SUVs are currently core profit products for GM. The company stated it will begin production of gasoline SUVs and light-duty pickups at its Orion assembly plant in Michigan in early 2027, whereas this plant was originally slated to start producing electric trucks next year. The U.S. government previously welcomed GM's investment plan announced in June. A comprehensive tax and budget bill passed by the U.S. Congress in early July removed penalties for violations of Corporate Average Fuel Economy (CAFE) standards, which is expected to boost gasoline vehicle production. GM paid $128.2 million in fines for failing to meet U.S. fuel economy standards in 2016 and 2017. Furthermore, the U.S. will eliminate the $7,500 tax credit for purchasing or leasing new electric vehicles on September 30, which is expected to impact the already slowing growth of electric vehicle sales in the U.S. Additionally, the U.S. government has significantly raised tariffs on imported cars to compel automakers to increase domestic production capacity.