GM and Ford Shift Focus from EVs to ICE Vehicles

General Motors (GM) has announced a delay in the opening of its Orion Assembly EV plant until 2026, marking the second delay for the facility that will produce the Chevy Silverado EV. This decision, along with the postponement of a Buick PHEV, is attributed to the lack of buyer interest in electrified vehicles.

The Big Decision: Electric vs. Combustion

For automakers like GM and Ford, the decision to go electric or stick with combustion engines is crucial. Making the wrong move at the wrong time can result in significant financial losses. Both GM and Ford have already invested billions in electric vehicles (EVs) but are now scaling back their electrification plans due to low consumer demand.

GM’s Orion Assembly Plant Delay

GM’s Orion Assembly plant in Detroit, set to produce the new Chevrolet Silverado EV, has faced a second delay, pushing production to mid-2026. This setback means GM will not reach its target of building 1 million EVs by the end of 2025. The decision reflects a shift in focus away from EVs, as even partially-electric vehicles are being affected by GM’s strategic change.

Ford’s Shift to Super Duty Pickups

Similarly, Ford recently announced that its Oakville plant in Canada will now manufacture Super Duty pickups instead of electric SUVs. The move underscores the high demand and profitability of traditional combustion-powered trucks compared to EVs. Ford’s investment of $3 billion in updating the Oakville plant highlights the company’s commitment to meeting consumer preferences.

Conclusion

As GM and Ford pivot away from EVs towards ICE vehicles, it reflects a broader trend in the industry where automakers are adjusting their strategies based on market demand. The shift underscores the challenges and complexities of transitioning to electric vehicles in a market still dominated by traditional combustion engines.