GM Investing $500M in Texas Plant for Gas-Powered SUVs - The Detroit Bureau

GM Investing $500M in Texas Plant for Gas-Powered SUVs – The Detroit Bureau

Time Stamp: June 8, 2023 4:16 PM
Source Node: 2715891

General Motors is investing $500 million in its Arlington, Texas plant to build the next-generation of its full-size sport-utility vehicles — powered by internal combustion engines.

GM Arlington Texas plant
GM investing $500 million in its Arlington, Texas plant to build internal combustion-powered full-size SUVs.

The plant builds the breadth of the company’s large utes, including the Cadillac Escalade, GMC Yukon and Chevrolet Suburban. Through this investment, Arlington Assembly will receive new tooling and equipment in its stamping, body shop and general assembly areas, the company noted.

“Today we are announcing plans for a significant investment in Arlington to strengthen our industry-leading full-size SUV business,” said Gerald Johnson, executive vice president, Global Manufacturing and Sustainability. 

“Preparing the plant to produce future ICE full-size SUVs reflects our commitment to our valued customers and the efforts of the dedicated Arlington Assembly employees, who have been breaking production records this year.”

GM officials noted Thursday’s announcement means it’s made $31 billion in commitments to its U.S. manufacturing and parts distribution facilities — including $2 billion at Arlington — since 2013.

Big investments in ICE

Pilot assembly of the 2021 Chevrolet Tahoe at GM’s Arlington Assembly plant
GM builds all of its full-size SUV models at the Texas plant.

The move marks the second large investment the company’s made in internal-combustion engine-powered vehicles. The company revealed Monday two Michigan plants will receive a combined investment of more than $1 billion, General Motors said, as it prepares to roll out its next-generation heavy-duty pickups.

Demand has been surging for pickups, in general, though GM’s HD models alone scored a 38% jump in demand last year. Heavy-duty trucks are among the industry’s most profitable product lines. Additionally, Ford is readying to unleash its next series of Super Duty pickups for the 2024 model year.

The project will benefit two different GM models: the heavy-duty versions of the Chevrolet Silverado and the GMC Sierra.

Though the automaker did not provide specifics, industry sources, including suppliers working on those programs, have indicated that the new trucks will debut next year as 2025 models.

To support the launches, GM will invest $788 million in its Flint Assembly plant. Another $233 million will be spent to upgrade the Flint Metal Center, which will supply key structural components for the HD trucks.

GM has recently invested more than $1.7 billion to upgrade plants in the Flint area — where the automaker was founded more than a century ago. That includes $579 million for the Flint Engine Operations that will provide some of the V-8 engines to be used in various versions of the Chevy Silverado and GMC Sierra.

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