GM Doubles Down On Keeping Combustion Alive With Another $500 Million Investment

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This follows a $1 billion investment in two Flint manufacturing plants to retain ICE models.

Following a $1 billion investment in two Flint manufacturing plans, General Motors (GM) is further bolstering its internal combustion engine (ICE) portfolio by investing more than $500 million in the Arlington Assembly in Texas, benefitting the production of its future combustion-powered full-size SUVs.

While the details regarding the future SUV models haven't been disclosed, one good takeaway from this announcement is GM's initiative to keep ICE alive for the years to come. Earlier this year, the carmaker announced it was developing an all-new small-block V8 for its full-size pickup truck and SUV models.

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GM has a good reason for retaining its ICE-powered nameplates amid the industry's electrification push, and that is to keep the company running. Without volume-sellers such as the Chevrolet Silverado and GMC Sierra, it would be more challenging, financially speaking, for the automaker to grow its electric vehicle (EV) lineup.

The Chevrolet Bolt EV is the only competitive electric model in the market under GM right now, yet Chevrolet announced that America's most affordable EV will be gone by the end of the year. The GMC Hummer EV has yet to pick up the pace amid setbacks such as a supply shortage and a safety recall due to a risky battery issue.

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As such, doubling down on ICE may be the smartest next step for GM. The half-a-billion investment will provide Arlington Assembly with new tooling and equipment in its stamping, body shop, and general assembly areas. It currently builds full-size SUVs including the GMC Yukon, Cadillac Escalade, and Chevrolet Tahoe/Suburban.

"Preparing the plant to produce future ICE full-size SUVs reflect our commitment to our valued customers and the efforts of the dedicated Arlington Assembly employees, who have been breaking production records this year," said Gerald Johnson, executive vice president, Global Manufacturing and Sustainability.

GM said more than $31 billion has been invested in its US manufacturing and parts distribution investment commitments since 2013, $2 billion of which are for the North Texas-based assembly.

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