GM’s Texas plant to get $500M for next full-size SUVs

GM's Texas plant to get $500M for next full-size SUVs

General Motors said Thursday it intends to invest more than $500 million at its factory in Arlington, Texas, to build future versions of its popular full-size SUVs.

The automaker said in a statement that its investment plans at Arlington Assembly are contingent on “successful discussions with local government officials,” and declined to disclose details and production timing for the future products.

The Arlington factory builds some of GM’s most profitable vehicles — large, internal combustion SUVs including the Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL and the Cadillac Escalade, Escalade ESV and Escalade-V. GM said its investment will be put toward new tooling and equipment for stamping, body shop and general assembly.


“Today we are announcing plans for a significant investment in Arlington to strengthen our industry-leading full-size SUV business,” Gerald Johnson, GM’s executive vice president of global manufacturing and sustainability, said in a statement. “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.”

The Tahoe was the top-selling large SUV in the U.S. in 2022, with sales of 105,756, according to the Automotive News Research & Data Center. The Yukon and Yukon XL were second, with sales of 82,304 last year.

The Escalade and Escalade ESV topped the large premium SUV segment in 2022, with sales of 40,247 — nearly double that of its nearest competitor, the Mercedes-Benz GL/GLS, according to the data center.

GM has announced plans to invest close to $2 billion at Arlington Assembly since 2013, and has committed to spending more than $31 billion across its U.S. manufacturing and parts distribution facilities over that same period.

Arlington follows investment announcements this week in Flint, Mich., and Oshawa, Ontario, to support the next generation of gasoline full-size pickups built there.

GM on Monday said it plans to spend more than $1 billion to upgrade two plants in Flint, including $788 million at Flint Assembly to build the redesigned Chevrolet Silverado HD and GMC Sierra HD. A day later, the automaker committed 280 million Canadian dollars ($209 million) at its Oshawa Assembly plant, which makes light- and heavy-duty Silverados.

“When business is booming as it has been for the past decade — due to the hard work of UAW members — the company should continue to invest in its work force,” UAW Vice President Mike Booth, who leads the union’s GM department, said in GM’s statement.


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