GM, Volvo to Ramp Up High-Volume, Gas-Powered Vehicle Production in U.S.
Fizzling demand for electric vehicles combined with the issue of tariffs continues to force automakers to revise their plans. General Motors and Volvo are now providing further examples.
The former will use its Orion, Michigan assembly plant to build Chevrolet Silverado 1500 and GMC Sierra 1500 pickups as well as Cadillac Escalade SUVs starting in 2027. The news, first reported by Detroit Free Press, was confirmed by GM yesterday.
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Orion was originally planned to become an EV-only factory, but it will instead be used to support production of gasoline-powered models, for which demand remains very strong.
The move does not affect the other plants that manufacture the Silverado, Sierra and Escalade. However, you have to remember that GM has previously announced its intention to reduce operations at its Oshawa, Ontario assembly plant, which builds Silverado 1500 and Silverado HD trucks, from three to two shifts this fall.
In June, the automaker said that it would also be increasing gasoline vehicle production at its Fairfax, Kansas and Spring Hill, Tennessee plants. The Chevrolet Equinox and Blazer will be assembled there, respectively.
Meanwhile at Volvo…
In early April, following U.S. President Donald Trump’s announcement of new 25% tariffs on foreign-made vehicles, new Volvo CEO Håkan Samuelsson hinted at increasing the number of models and units built on American soil.
Today, Volvo announced that its best-selling XC60 will begin production at the Ridgeville, South Carolina plant in late 2026. Also, according to insider sources quoted by Automotive News, the three-row XC90 is scheduled to follow in late 2028. Both models are currently imported from Sweden.
The Ridgeville factory, which replaced production of the S60 sedan with the Volvo EX90 and Polestar 3 electric SUVs last year, is largely under-utilized at present. The addition of the XC60 and XC90 in both gas and hybrid variants would bring it closer to its maximum capacity of 150,000 vehicles per year.
