General Motors, the prominent US automotive company, has decided to postpone the transformation of a plant dedicated to manufacturing electric vehicle (EV) trucks, citing shifting demand dynamics as a contributing factor.
In an official statement, the company disclosed that it would be rescheduling the conversion of its Orion facility in Michigan by a year, now targeting late 2025 for completion. This adjustment aligns with the evolving demand for EVs and allows for more efficient capital investment management.
The Orion plant is already responsible for producing Chevrolet Bolt EVs and was originally slated to commence production of Chevrolet Silverado electric pickups and GMC Sierras in late 2024. The company confirmed that the production of Chevy Bolts will conclude as planned by the end of 2023. Employees at the Orion plant will be offered alternative positions, including roles at another Michigan facility specializing in EV production, the Factory ZERO Detroit-Hamtramck.
In January 2022, General Motors had revealed its intention to invest $4 billion in converting the Orion plant for electric pickup production. Additionally, the company committed to allocating $35 billion by 2025 towards electric and autonomous vehicle ventures.
The automotive giant is one of the “Big Three” US automakers currently grappling with historic labor strikes, where workers are advocating for increased wages and various enhancements, particularly in response to industry transformations driven by the transition to electric vehicles.
