General Motors is recalibrating its electric vehicle (EV) ambitions, signaling a major shift in strategy by investing approximately $4 billion in U.S. plants to ramp up gas-powered vehicle production. The move comes as EV demand cools and underscores GM’s emphasis on flexibility and profitability over a rapid transition to an all-electric lineup.
Central to this shift is the transformation of the Orion Assembly plant in Michigan, originally intended to build electric trucks starting in 2025. Instead, the facility will now produce gas-powered full-size SUVs and pickup trucks from 2027. GM will also begin producing gas-powered Chevrolet Equinox and Blazer models at its Kansas and Tennessee plants, respectively, even as these facilities continue EV production.
The strategy reflects a clear departure from GM’s earlier pledge to phase out internal combustion engine vehicles by 2035. With EV growth slower than expected and consumer preferences still favoring trucks and SUVs, GM appears to be hedging its bets — balancing between electrification and sustaining its core gas-powered vehicle market.
While EV development continues — with plans to build the new Chevrolet Bolt and next-gen affordable EVs — GM’s messaging is increasingly centered on consumer choice and manufacturing resilience, Reuters news report said.
GM CEO Mary Barra, in a news statement, emphasized a dual-path approach, reaffirming the company’s support for American jobs and its intent to serve diverse customer needs.
This strategic pivot also aligns with broader political and economic trends. With U.S. tariffs on imports rising and domestic manufacturing incentives gaining momentum, GM’s new investments are well-timed to capitalize on reshoring initiatives.
In short, GM is not abandoning EVs — but it is clearly rebalancing, prioritizing flexibility, profitability, and production capacity in a changing automotive landscape.
Investment focus
GM said its 2025 capital spending guidance is unchanged at between $10 billion and $11 billion. Going forward, GM expects its annual capital spending will be in a range of $10 billion to $12 billion through 2027, reflecting increased investment in the U.S., the prioritization of key programs, and efficiency offsets.
GM’s EV achievements
General Motors has solidified its position as a leader in the U.S. electric vehicle (EV) market, becoming the #2 EV seller in the second half of 2024, supported by a growing lineup of 13 EV models across Chevrolet, Cadillac, and GMC. Chevrolet emerged as the fastest-growing EV brand and ranks second in EV sales overall.
GM’s Factory ZERO in Detroit-Hamtramck will exclusively assemble major EV models including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and HUMMER EV. GM is also preparing to launch the 2027 Chevrolet Bolt EV at its Fairfax Assembly plant. These milestones reflect GM’s strategic focus on expanding EV production while maintaining strength in gas-powered segments.
Baburajan Kizhakedath