Automaker General Motors increases manufacturing of Chevrolet Silverado and GMC Sierra pickup trucks while reducing electric vehicle (EV) production plans for the future.

In a significant move, General Motors (GM) has announced a major investment of $888 million in its Tonawanda Propulsion plant in Buffalo, New York. This investment will be used to build the next generation of V-8 engines for popular models such as the Chevrolet Silverados, GMC Sierras, Cadillac Escalades, Chevrolet Tahoes, Suburbans, and GMC Yukons.

However, the future of electric vehicle (EV) production at the Tonawanda plant is uncertain, as GM's aggressive plan towards electrification seems to be slowing down. This is due to the increased production of gas-powered models, a shift that has been confirmed by Mary Barra, Chair and CEO of GM.

The Chevrolet Silverado and GMC Sierra light-duty pickups have sold well during the first half of 2025, contributing to this decision. The Cadillac Escalade, the top-selling luxury full-size SUV in North America, will also be produced at the Tonawanda plant, but not until 2027.

Meanwhile, the state of Michigan had initially provided $480 million in grants for battery and EV production at the Orion plant. However, there is uncertainty concerning these grants for the Orion site where GM plans to increase production of gas-powered models.

The Chevrolet Bolt, initially planned to be produced at the Orion plant, will not be manufactured there. Instead, all Chevrolet Silverado EVs, GMC Sierra EVs, HUMMER EVs, and SUVs are currently built at Factory Zero.

Production of the Chevrolet Silverado will continue at the Orion plant, but for gas-powered models. The Cadillac Escalade, Chevrolet Tahoe, Suburban, GMC Yukon, and Yukon XL are built in Arlington, Texas, where GM aims to boost production of Tahoes, Suburbans, and Yukons by moving the Escalade production to Orion.

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The production of Chevrolet Silverado 1500 and GMC Sierra 1500 will continue in Fort Wayne, Indiana. Barra stated that the investments in the Tonawanda Propulsion plant show commitment to strengthening American manufacturing and supporting jobs in the U.S.

This shift in focus towards gas-powered models and the delay in EV production plans at the Orion plant signify a change in GM's strategic approach towards electrification, a move that will be closely watched by the automotive industry.

Automaker General Motors increases manufacturing of Chevrolet Silverado and GMC Sierra pickup trucks while reducing electric vehicle (EV) production plans for the future.