General Motors (GM) said on Tuesday it will move production of the Cadillac Escalade to a Michigan assembly plant, while adding new capacity for petrol-powered Chevrolet Silverado and GMC Sierra light-duty pickups at the same facility.
The production shifts are part of GM's $4bn (R71.56bn) investment plan announced in June at US facilities in Michigan, Kansas and Tennessee, a move that expands production of petrol-powered trucks and SUVs.
The Detroit giant and many of its US competitors have pulled back on some goals around production of electric vehicles as demand has been weaker than expected.
GM's continued investment in vehicles such as the Sierra and Escalade calls into question its plan to end the production of petrol-powered cars and trucks by 2035. The Escalade is produced in Arlington, Texas, alongside other large SUVs such as the GMC Yukon, Chevrolet Suburban and Chevy Tahoe.
Production at Arlington is expected to remain consistent after the Escalade moves to Michigan, a GM spokesperson said. The automaker will add production of the Silverado and Sierra trucks at its Orion Township, Michigan factory, in addition to existing production in Fort Wayne, Indiana.
The petrol-powered trucks and SUVs are among GM's biggest money makers. GM told Reuters the moves would "help meet continued strong customer demand".
GM said it will begin manufacturing the SUVs and light-duty pickup trucks at its Orion Assembly plant in early 2027. Orion Assembly was previously slated to build electric trucks starting next year. The June investment news was welcomed by the White House, which has imposed significant tariffs on imported vehicles to pressure automakers to increase production in the US.
President Donald Trump this month signed tax and budget legislation that eliminates fines for failures to meet corporate average fuel economy rules, a move that makes it easier to build more petrol-powered vehicles.
GM previously paid $128.2m (R2.29bn) in penalties for 2016 and 2017 for failing to meet requirements. The sweeping tax and budget legislation approved by Congress in early July will also eliminate the $7,500 (R134,135) tax credits for buying or leasing new electric vehicles on September 30, which is expected to hit slowing EV growth.
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