General Motors (GM) announced it plans to invest around US$ 4 billion in the next two years to strengthen its US vehicle production operations, in response to the recent import tariff hikes by the Trump-led US government. This new investment plan, which will result in the transfer of some production from Mexico, is in addition to the recently-announced US$ 888 million investment in the company’s Tonawanda engine plant in New York State.
GM confirmed it plans to increase its annual production capacity in the US to over two million battery-powered and internal combustion engine (ICE) vehicles. The plants that will benefit from the new investment include:
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- Orion, Michigan, which will begin production of a ICE full-size SUVs and light duty pickup trucks in early 2027.
- The Detroit-Hamtramck plant will become the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EV pickup and SUV.
- Fairfax, Kansas City, will produce ICE-powered Chevrolet Equinox from mid-2027 in response to strong demand for the recently redesigned model. The plant is also scheduled to produce the new Chevrolet Bolt EV by the end of 2025, with additional “affordable” EV models set to follow later on.
- Spring Hill, Tennessee: GM plans to add the ICE-powered Chevrolet Blazer to the plant’s line-up from 2027, to be produced alongside the Cadillac Lyriq and Visiq EVs and the Cadillac XT5.
GM’s CEO, Mary Barra, said in a statement: “We believe the future of transportation will be driven by American innovation and manufacturing expertise. Today’s announcement demonstrates our ongoing commitment to build vehicles in the US and to support American jobs. We’re focused on giving customers choice and offering a broad range of vehicles they love.”
The company pointed out that it currently has around fifty vehicle and parts manufacturing plants in 19 US states, including eleven vehicle assembly plants, employing a COMBINED one million people directly and indirectly, including at parts suppliers and dealers.
GM’s capital spending guidance remained unchanged at between US$ 10 billion and US$ 11 billion for 2025, rising slightly to between US$ 10 billion and US$ 12 billion in 2026 and 2027 to “reflect increased investment in the US, the prioritization of key programs, and efficiency offsets.”
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