GM to invest $4 billion in three US facilities as it ramps up gas-powered vehicles
The company said it will begin production of gas-powered full-size SUVs and light-duty pickup trucks at its Orion Assembly plant in Orion Township, Michigan, in early 2027. Orion Assembly was previously slated to build electric trucks starting next year.
The move calls into question GM's plan to end the production of gas-powered cars and trucks by 2035. It was welcomed by the White House, which has imposed significant tariffs on imported vehicles to pressure car makers to move more production to the US.
In March, GM CEO Mary Barra met with US President Donald Trump to talk about investment plans and told the president GM needed relief from California emissions and federal fuel economy requirements in order to expand US production, sources told Reuters.
Trump is set to sign legislation tomorrow to rescind California's 2035 zero-emission vehicle rules.
"No president has taken a stronger interest in reviving America's once-great auto industry than President Trump, and GM's investment announcement builds on trillions of dollars in other historic investment commitments to Make in America," White House spokesman Kush Desai said.
GM's Fairfax Assembly plant in Kansas is set to start building the all-electric Chevrolet Bolt by the end of this year, and GM says it will now also build the gas-powered Chevrolet Equinox starting in mid-2027.
In a statement, the largest US car maker said it expects to make "new future investments in Fairfax for GM's next generation of affordable EVs."
GM last month said it is also investing $888m at a New York propulsion plant to increase gas engine production.
At its Spring Hill plant in Tennessee, GM will add production of the gas-powered Chevy Blazer beginning in 2027. It will be built alongside the electric Cadillac Lyriq and Vistiq SUVs as well as the gas-powered Cadillac XT5.
The gas-powered Chevrolet Equinox and Blazer are both currently produced in Mexico. The Equinox will continue to be built in Mexico once production starts at US facilities in order to supply markets outside of North America.
Mexico's economy minister Marcelo Ebrard said in a social media post he talked with GM and said there is no expectation of any plant closure or layoffs at the automaker's Mexican plants.
GM said it expects annual capital spending will be between $10 billion and $12 billion up to 2027, reflecting increased US investment, prioritisation of key programmes and efficiency offsets.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Journal
35 minutes ago
- The Journal
Donald Trump to send 'tariff letters' to countries from today
THE US WILL begin to send letters to countries it intends to place blanket tariffs on before President Donald Trump's 9 July deal deadline. In a post to his social media platform, Trump said that letters and the conditions of any deals that have been reached will be sent to countries from 5pm (Irish Time) today. 'I am please to announced that the United States tariff letters, and/or deals, with various countries from around the world, will be delivered starting 12pm (Eastern), Monday, July 7th,' Trump wrote. Most countries have been slapped with a 10% tariff on exported goods by the US under Trump's levy programme. He told reporters yesterday that up to 15 countries may receive letters from today. US Commerce Secretary Howard Lutnick has said, however, that higher tariffs would kick in on 1 August but denied that it was a way of delaying the deadline. Treasury Secretary Scott Bessent also denied that the White House was backing down. It comes as the EU is racing to reach a deal with the US ahead of Wednesday, as the threat of potentially a 50% tariff on European goods looms over negotiators . Advertisement So far, the Trump administration has only reached deals with the UK and Vietnam, while Washington and China agreed to temporarily lower high levies on each other's products. Should a mutual agreement not be reached, the EU has said it will impose its countermeasures on the US on 14 July. Trade commissioner Maroš Šefčovič returned to Brussels on Friday and confirmed that the EU has yet to reach a deal . The EU has sought to maintain a 0% tariff rate between its member states and the US. While this stance is supported by the Irish government, trade minister and Tánaiste Simon Harris has said that businesses should operate under the assumption that a 10% tariff is the 'new norm'. Harris today is set to be briefed by officials and speak with Šefčovič before briefing ministers on the latest trade developments at a cabinet meeting tomorrow, in 'final push' efforts to reach a deal. 'Tariffs are bad for consumers, jobs, economic growth and investment. As I have been saying for some time, the uncertainty is also bad for economic confidence and Irish businesses seeking clarity on the trading environment in which they operate,' he said. It is unclear if the EU will be successful in reaching its demands. There are serious concerns that the US's response to the European countermeasures could impact Ireland's lucrative aviation, pharma, drinks and agri-food industries Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Irish Sun
an hour ago
- The Irish Sun
Struggling car brand ‘in talks' to hand huge factory to major tech firm behind Apple iPhones after £4bn losses
A STRUGGLING car brand is "in talks" to hand a huge factory to a major tech firm behind the Apple iPhones after losing a whopping £4billion. Japanese car giant Nissan is in talks to let Taiwan's Foxconn use one of its factories to build electric vehicles, according to insiders. 2 Nissan had been thinking about closing its Oppama plant Credit: Getty 2 A deal with Taiwan's Foxconn to build EVs at Oppama could save the plant from closure Credit: Reuters The deal could throw a lifeline to the factory, which is at risk of shutting down for good. Nissan had been thinking about closing its Oppama plant, just south of Tokyo, Reuters reported in May. CEO Ivan Espinosa announced major restructuring plans to help save the struggling carmaker. The move led seven of Nissan's 17 factories worldwide to cut their workforce by around 15 per cent. read more on motors A deal with Taiwan's Foxconn to build EVs at Oppama could save the plant from closure. This could soften the blow of Nissan's restructuring for the plant's 3,900 workers and suppliers. The negotiations were first reported late by the Nikkei business daily. Nissan said the report was based on information it had provided.# Most read in Motors The Sun has contacted Nissan for comment. It comes after the company's new CEO confirmed it will be axing hundreds of jobs at a UK factory after reporting in the last financial year. Final days for Nissan drivers to claim $5k from 'defect' settlement – you can get multiple payouts by filling in form Earlier this year, the manufacturer announced 20,000 job losses, seven factory closures and a pause on all post-2026 new car development. It is all part of a restructuring project overseen by Now, According to a source and emails seen by Reuters, Nissan has asked some suppliers in Britain and the European Union to accept delays in payments. This would give the company more cash on hand at the end of the April-June first quarter. Requests like this are not uncommon as a means of freeing up cash flow. In a statement, Nissan told The Sun: 'As we take quick actions under the Re:Nissan plan, we are leveraging the strong and flexible relationships we have built with our suppliers to ensure financial stability and maintain solid foundations for future success. 'With their full agreement, we have incentivised some of our valued suppliers to collaborate under more flexible payment terms, at no cost to them, in order to support free cash flow. 'As previously communicated, our cash position remains strong. We continue to cooperate with our valued suppliers across our operations, including in the UK, where we are looking forward together to the launch of the all-new Nissan LEAF and the arrival of our new e-POWER technology to Qashqai, the highest-volume car built in Britain.'
Irish Examiner
4 hours ago
- Irish Examiner
Trump calls Musk's formation of new party "ridiculous" and criticizes his own NASA pick
President Donald Trump on Sunday called Elon Musk's plans to form a new political party "ridiculous," launching new barbs at the tech billionaire and saying the Musk ally he once named to lead NASA would have presented a conflict of interest given Musk's business interests in space. A day after Musk escalated his feud with Trump and announced the formation of a new US political party, the Republican president was asked about it before boarding Air Force One in Morristown, New Jersey, as he returned to Washington upon visiting his nearby golf club. "I think it's ridiculous to start a third party. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it's always been a two-party system, and I think starting a third party just adds to confusion," Trump told reporters. "It really seems to have been developed for two parties. Third parties have never worked, so he can have fun with it, but I think it's ridiculous." Shortly after speaking about Musk, Trump posted further comments on his Truth Social platform, saying, "I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a TRAIN WRECK over the past five weeks." Musk announced on Saturday that he is establishing the "America Party" in response to Trump's tax-cut and spending bill, which Musk said would bankrupt the country. "What the heck was the point of @DOGE if he's just going to increase the debt by $5 trillion??" Musk wrote on X on Sunday, referring to the government downsizing agency he briefly led. Critics have said the bill will damage the US economy by significantly adding to the federal budget deficit. Musk said his new party would in next year's midterm elections look to unseat Republican lawmakers in Congress who backed the sweeping measure known as the "big, beautiful bill." Musk spent millions of dollars underwriting Trump's 2024 re-election effort and, for a time, regularly showed up at the president's side in the White House Oval Office and elsewhere. Their disagreement over the spending bill led to a falling out that Musk briefly tried unsuccessfully to repair. Trump has said Musk is unhappy because the measure, which Trump signed into law on Friday, takes away green-energy credits for Tesla's electric vehicles. The president has threatened to pull billions of dollars in government contracts and subsidies that Tesla and SpaceX receive in response to Musk's criticism. NASA APPOINTMENT 'INAPPROPRIATE' Trump, in his social media comments, also said it was "inappropriate" to have named Musk ally Jared Isaacman as NASA administrator, considering Musk's business with the space agency. In December, Trump named Isaacman, a billionaire private astronaut, to lead NASA but withdrew the nomination on May 31, before his Senate confirmation vote and without explanation. Trump, who has yet to announce a new NASA nominee, on Sunday confirmed media reports he disapproved of Isaacman's previous support for Democratic politicians. "I also thought it inappropriate that a very close friend of Elon, who was in the Space Business, run NASA, when NASA is such a big part of Elon's corporate life," Trump said on Truth Social. "My Number One charge is to protect the American Public!" Musk's announcement of a new party immediately brought a rebuke from Azoria Partners, which said on Saturday it would postpone the listing of its Azoria Tesla Convexity exchange-traded fund because the party's creation posed "a conflict with his full-time responsibilities as CEO." Azoria was set to launch the Tesla ETF this week. Azoria CEO James Fishback posted on X several critical comments about the new party and reiterated his support for Trump. "I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO," Fishback said. - Reuters Read More Risk of further floods in Texas as death toll rises to 82
