Marty Wieder, Arlington Economic Development Corp. executive director, isn’t worried about General Motors’ decision to move Cadillac Escalade production to Michigan.
City officials had been given a heads-up about the July 15 announcement, Wieder said. City Manager Trey Yelverton sent details to council members that night. Escalades will be built in Orion Township, Michigan, starting in 2027.
“They gave us pre-notice and we knew this was coming,” Yelverton said. “The key thing is, Tahoes, Yukons and Suburbans will remain in Arlington, and all of the head counts and shifts will be maintained.”
The change will give Arlington Assembly, which opened in 1954, the capacity to build more of the Chevrolet Suburban and Tahoe as well as the GMC Yukon and Yukon XL vehicles, Anthony Andro, Arlington plant communications manager, said in an email to workers.
The good news, Wieder said, is nothing is changing.
“We understand this is part of a broader strategy to bring manufacturing back to the United States and are balancing out the workload as they re-shore Mexico in particular,” Wieder said.
In June, GM unveiled a plan to allocate about $4 billion over the next two years to enhance its U.S. manufacturing capabilities. The investment focuses on expanding production capacity for both gasoline and electric vehicles. With the financial commitment, GM intends to produce more than 2 million vehicles annually in the U.S.
Detroit-based GM sees the Escalade production move as a way to help meet strong customer demand, spokesperson Tara Kuhnen said.
“GM is proud to call Michigan home, and these moves will further strengthen our manufacturing footprint,” she said.
The announcement was made as part of a change in direction for the Michigan plant after the company received $480 million in state grant funds to expand Orion Assembly to increase electric vehicle production. GM said, however, it no longer plans to produce any electric vehicles there.
Two years ago, GM announced plans to invest more than $500 million in the Arlington plant to prepare it for production of future full-size internal combustion engine SUVs.
GM’s announcement in June 2023 brought its U.S. manufacturing and parts distribution facility investment commitments to more than $31 billion since 2013, the company said.
Lance Murray is a freelance contributor covering business for the Arlington Report.
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