GM pledges $4 billion in new US manufacturing investments

USA Today

17-06-2025

GM pledges $4 billion in new US manufacturing investments
Show Caption
Hide Caption
General Motors: History, innovation, and legacy
Learn about the rich history and notable innovations of General Motors, from its founding in 1908 to its leadership in electric and autonomous vehicle technology.
Two popular Chevrolet models will move to U.S. plants from Mexico.
The plan is to produce gas-powered full-size SUVs and light duty pickup trucks at Orion Assembly in Michigan early 2027.
GM also is retooling its Fairfax Assembly plant in Kansas and the Spring Hill Manufacturing plant in Tennessee.
General Motors will invest $4 billion in three U.S. manufacturing sites over the next two years to prepare for changing production slated to begin in 2027. Two popular Chevrolet models also will move to U.S. plants from Mexico as part of the shift.
As part of the announcement on June 10, GM also confirmed reports that it has no current plans to produce electric vehicles at its Michigan Orion Assembly plant. Instead, the company will produce gas-only vehicles at the plant after its retooling.
The Chevrolet Blazer also is slated for a refresh, the company spokesman confirmed, and its production will move from Mexico to the United States by 2027.
The new investment will not reduce any production in North America, according to a company spokesman, and does not include previously announced U.S. investment as part of its 2023 UAW labor contract.
Sam Abuelsamid, vice president of market research at Telemetry, said his interpretation of the news is that GM's production changes come as a response to President Donald Trump's tariffs. Trump imposed 25% tariffs on imported vehicles and 25% tariffs on many auto parts imported into the United States earlier this year.
On May 1, GM lowered its 2025 guidance, saying tariff expenses are likely to eat up to $5 billion in previously expected profits.
'They won't say it outright, but it's almost certain that they're moving production from Mexico to the U.S.,' he said, 'You're looking at between 400,000 and 500,000 more units in the U.S. They're not expecting to sell that many more vehicles in the U.S.'
Automotive industry moves: General Motors commits $888 million to build next-gen V-8 engine in New York
Orion Assembly changes
GM planned to relaunch Orion Assembly after a $4 billion retooling and expansion to assemble the Silverado EV and GMC Sierra EV later this year for late 2025 model year production, but that was pushed ahead six months to mid-2026.
Previously, Orion made the Chevrolet Sonic and Bolt EVs, though production of those vehicles ended there last year.
The plan now is to produce gas-powered full-size SUVs and light duty pickup trucks at Orion in early 2027, according to the company.
Also by then, GM's Factory Zero in Detroit-Hamtramck will serve as the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ and GMC Hummer EV pickup and SUV.
Praise for production changes
GM's production announcement was met with near-universal praise from the White House, the United Auto Workers union and Michigan politicians on both sides of the aisle.
'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 in a statement. 'The One, Big, Beautiful Bill's tax cuts, pro-growth policies, and full expensing of equipment investments will only turbocharge this resurgence under President Trump.'
Trump's 'Big, Beautiful' tax bill proposes, among other things, to kill the electric vehicle tax credit by the end of this year and penalize hybrid and electric vehicle owners with annual fees to compensate for lost revenue customers would have paid in gas tax.
UAW President Shawn Fain said in a statement that the union had said for months that the auto industry could utilize excess capacity at U.S. auto plants and invest billions into factories, communities and American autoworkers.
'While other companies drag their feet, GM is showing that strategic auto tariffs work with a massive $4 billion investment that will create thousands of good paying union jobs. Thanks to the dedication of our members, who have been speaking up about the damage done by bad trade deals, we are finally starting to see real progress,' he said. 'It's time to invest in blue collar America, and GM is showing how it's done. This is just the beginning.'
U.S. Rep. and House Republican Conference Chairwoman Lisa McClain, R-Bruce Township, said in a statement GM's decision follows a series of economic moves made by the Trump administration aimed at reversing decades of industrial decline. The Orion Assembly plant is located in McClain's congressional district.
'This investment is a game-changer for our district and a big win for hard-working Michiganders,' McClain said. 'For months, we have said the president's efforts would pay off and more companies would invest in America again. Putting our country first, for the first time in years, is working. This investment is proof. I'm proud to have helped deliver this major win for our community.'
U.S. Rep. Debbie Dingell, D-Ann Arbor, also praised the decision.
'This is good news for Michigan's workers and our role as a leader in the global auto industry. In order to remain a leader, we must be producing a robust product line that consumers want, including electric vehicles,' she said in a statement. 'The global market wants EVs. This investment demonstrates the auto industry's commitment to this leadership, and U.S. policy must support it. I will continue to work with every stakeholder to invest in manufacturing here at home, bring back jobs from overseas, and support the workers and communities who have built their lives around the auto industry."
GM 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 U.S. and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.'
Other investments
GM also is retooling its Fairfax Assembly plant in Kansas City and the Spring Hill Manufacturing plant in Tennessee.
Fairfax Assembly will produce the gas-powered Chevrolet Equinox beginning in mid-2027, and will start producing the 2027 Chevrolet Bolt EV by the end of 2025.
The Mexico-assembled Equinox is one of GM's top-selling vehicles and the No. 1 single nameplate that GM produces in Mexico for the U.S. market. GM exported 257,000 gas and electric Equinox vehicles from its Ramos plant across 2024, Abuelsamid said.
GM said it plans to announce further investments to Fairfax for electric vehicles in the future.
As for Spring Hill, in addition to bringing the Chevrolet Blazer production up from Mexico, the plant will also produce the Cadillac Lyriq and Vistiq EVs, as well as the Cadillac XT5.
Once these changes come into play, Abuelsamid said, vehicle costs may rise.
'GM will probably increase prices once they increase U.S. production,' he said. 'That's why these vehicles were built in Mexico in the first place.'
Free Press staff writer Todd Spangler contributed to this report.
Jackie Charniga covers General Motors for the Free Press. Reach her at [e-mail].