General Motors (GM) has announced a one-year delay to its $4 billion plan to convert the Orion Assembly plant into an electric vehicle (EV) truck factory. The reconfiguration of the Orion plant, originally scheduled for completion in 2024, is now expected to be finished by late 2025. GM aims to better manage capital investment while aligning with evolving EV demand. The company plans to implement engineering improvements to increase the profitability of its products.
Key Takeaway
General Motors has decided to delay its $4 billion plan to convert the Orion Assembly plant into an EV truck factory by a year, reflecting the evolving demand for electric vehicles. The company aims to manage capital investment more effectively and has identified engineering improvements to enhance product profitability. The decision to delay the project aligns with the industry trend of adjusting manufacturing timelines based on shifting EV demand. The Orion Assembly Plant will offer alternative positions to its union employees, while production continues to increase at Factory ZERO Detroit-Hamtramck Assembly.
Adjusting to Changing EV Demand
The decision to delay the project suggests that the demand for EVs may not be as strong as originally anticipated. This adjustment aligns with the trend seen across the industry, where other automakers, including Lucid, have also faced a softening demand for EVs. In response, these companies have had to adapt their timelines and investment plans for new factories or conversions of existing ones.
The Impact on the Orion Assembly Plant
Currently, the Orion Assembly Plant employs around 1,271 workers and is responsible for the assembly of the Chevy Bolt and Chevy Bolt EUV. GM intends to conclude production of these two vehicles by the end of the year. Union employees at the Orion facility will be offered alternative positions within Michigan, including roles at Factory ZERO Detroit-Hamtramck Assembly, where the GMC Hummer EV pickup and SUV, Chevrolet Silverado EV, and Cruise Origin are being manufactured. Additionally, Factory ZERO workers will begin producing the GMC Sierra EV next year. GM has noted that production at this facility is increasing and plans to add a second shift in 2024.
GM’s Investment in Electric Truck Manufacturing
In January 2022, GM announced its $4 billion investment to convert the Orion factory into a production site for electric trucks, utilizing the GM-developed Ultium Platform. This initiative is part of a wider $7 billion investment in four Michigan factories focused on battery cell and electric truck manufacturing, including a third plant in collaboration with LG Energy Solutions.
