GM invests $500 million to build large SUVs in Texas

General Motors will invest more than $500 million to upgrade its Arlington, Texas, factory to build the Cadillac Escalade, Chevy Tahoe and Suburban and GMC Yukon and Yukon XL.

The Detroit automaker announced the plan Thursday and said the investment is pending discussions with local officials in Texas.

The 69-year-old Arlington Assembly will be upgraded with new tooling and stamping, body shop and general assembly equipment. GM has invested nearly $2 billion in the site since 2013.

Details about the upcoming SUVs were not disclosed, though GM noted the factory builds vehicles that are powered by internal combustion engines. The large SUVs are among GM’s most popular and profitable models, and it’s expected the gasoline-powered vehicles will continue even as the company transitions to building more EVs.

The electric Escalade, called the Escalade IQ, was just announced in May and will be revealed later this year. GM did not specify where it will be built, though its Ultium-powered EVs are assembled in Michigan factories.

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