GM to invest US$4bil 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 automakers to move more production to the United States.
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 on Thursday 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 automaker 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 US$888 million at a New York propulsion plant to increase gas engine production.
At its Spring Hill, Tennessee, plant, 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 US$10 billion and US$12 billion through 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
New Straits Times
28 minutes ago
- New Straits Times
Trump hits Malaysia with 25 per cent tariffs
WASHINGTON: US President Donald Trump unveiled higher tariffs for Japan, South Korea and a dozen other countries in a push for new trade deals Monday – but extended the deadline for the steeper levies to kick in until August. Trump issued similar letters to countries including Indonesia, Bangladesh, Thailand, South Africa and Malaysia, saying he would slap duties on their products ranging from 25 per cent to 40 per cent. These mark a step up from the 10 per cent levy the president earlier imposed on almost all trading partners. But the starting date of August 1 marks a delay in Trump's reimposition of higher duties, originally due Wednesday. In near-identically worded letters to Japanese and South Korean leaders, Trump said US tariff hikes to 25 per cent came as their trading relationships with Washington were "unfortunately, far from Reciprocal." He warned of further escalation if there was retaliation against the levies. But the president said he was ready to lower the new levels if partners changed their trade policies: "We will, perhaps, consider an adjustment to this letter." Japan's Prime Minister Shigeru Ishiba said Sunday that he "won't easily compromise" in trade talks with Washington. Trump originally announced sweeping tariffs on world economies during what he called "Liberation Day" on April 2, claiming the United States was being "ripped off." Amid market turmoil, he then suspended higher duties affecting dozens of economies for 90 days, a deadline that would have expired Wednesday. On Monday, Trump signed an order formally extending the Wednesday deadline, postponing it to August 1. With the delay, White House Press Secretary Karoline Leavitt noted that Trump would set out the "reciprocal tariff rate" for partners in the coming month as negotiations continue. According to letters posted to Trump's Truth Social platform, products from Indonesia will face a 32 per cent tariff, while the level for Bangladesh is 35 per cent and Thailand, 36 per cent. Most countries receiving letters so far had duties similar or unchanged from threatened rates in April, although some like Laos and Cambodia see notably lower levels. While the Trump administration had signalled hopes of striking dozens of deals by July, there have been limited results so far. Washington has unveiled pacts with only Britain and Vietnam, while the United States and China agreed to temporarily lower tariff levels on each other's products that earlier reached three digits. Asked why Trump opted to start with South Korea, Leavitt said: "It's the President's prerogative, and those are the countries he chose." "This announcement will send a chilling message to others," said Asia Society Policy Institute Vice President Wendy Cutler, referring to Trump's initial letters to Tokyo and Seoul. "Both have been close partners on economic security matters," she said, adding that companies from Japan and South Korea have made "significant manufacturing investments in the US in recent years." US Treasury Secretary Scott Bessent said Monday that there would be more deals coming up: "We are going to have several announcements in the next 48 hours." "We've had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers," Bessent told CNBC. He added that he would meet with his Chinese counterpart in the coming weeks. Both sides have so far held high-level talks in Geneva and London. But Washington and Beijing's pause on higher tit-for-tat tariffs is due to expire in mid-August. Major US stock indexes fell from records Monday on Trump's fresh threats. The Nasdaq tumbled 0.9 per cent and the S&P 500 lost 0.8 per cent. Trump has also threatened another 10 per cent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "Anti-American policies" after they slammed his duties at a summit. But partners are still rushing to avert Trump's tariffs altogether. The European Commission said EU chief Ursula von der Leyen had a "good exchange" with Trump on trade when the pair spoke Sunday.
The Sun
28 minutes ago
- The Sun
Anwar criticises US-Israel bombing of Iran as wrong move
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has condemned the joint US-Israel bombing of Iran's nuclear sites last month, describing it as a misguided action that undermines diplomacy and ignores the resilience of the Iranian people. Speaking in an interview with France 24, Anwar stressed that resolving conflicts, including the Gaza crisis, requires fair multilateral negotiations rather than military aggression. 'I wasn't terribly pleased because I think the way forward is only through negotiations. They (the US) have tried to destroy Iran too many times and you should never ignore the people's resilience,' Anwar said. He highlighted the failure of the attack to account for Iran's capacity to withstand external pressures, reiterating Malaysia's support for an immediate ceasefire in Gaza. Anwar also criticised Western nations, including France, for demanding Iran abandon its nuclear programme while ignoring Israel's nuclear capabilities. 'If they want non-proliferation with the understanding that nuclear technology shouldn't be weaponised, that's fair. But it must be applied consistently. These contradictions and hypocrisy have become too apparent, and people no longer accept them,' he said. Addressing accusations of bias in his foreign policy, Anwar defended his engagement with Hamas leader Ismail Haniyeh, clarifying that his outreach was aimed at promoting ceasefire efforts, not endorsing violence. 'I was not there to provoke violence, but to support dialogue. But I won't be a lackey who condemns Hamas while remaining silent on Israel's actions,' he explained. On the Ukraine conflict, Anwar dismissed claims of double standards, stating that Malaysia has consistently advocated for peaceful resolutions. He revealed that he had urged Russian President Vladimir Putin to seek an amicable solution, emphasising Malaysia's neutral stance. - Bernama
New Straits Times
42 minutes ago
- New Straits Times
Netanyahu meets Trump at White House as Israel, Hamas discuss ceasefire
WASHINGTON/TEL AVIV: President Donald Trump hosted Israeli Prime Minister Benjamin Netanyahu for White House talks on Monday, while Israeli officials held indirect negotiations with Hamas aimed at securing a US-brokered Gaza ceasefire and hostage-release deal. Netanyahu's visit follows Trump's prediction, on the eve of their meeting, that such an agreement could be reached this week. Before heading to Washington, the right-wing Israeli leader said his discussions with Trump could help advance negotiations under way in Qatar between Israel and the Palestinian group Hamas. It was Trump's third face-to-face encounter with Netanyahu since returning to office in January, and came just over two weeks after the president ordered the bombing of Iranian nuclear sites in support of Israeli air strikes. Trump then helped arrange a ceasefire in the 12-day Israel-Iran war. Trump and his aides appeared to be trying to seize on any momentum created by the weakening of Iran, which backs Hamas, to push both sides for a breakthrough in the 21-month Gaza war. He said he also wants to discuss with Netanyahu the prospects for a "permanent deal" with Iran, Israel's regional arch-foe. The two leaders were scheduled to have a private dinner instead of formal talks in the Oval Office, where the president usually greets visiting dignitaries. It was not immediately clear why Trump was taking a lower-key approach with Netanyahu this time. After arriving overnight in Washington, Netanyahu met earlier on Monday with Trump's Middle East special envoy Steve Witkoff and Secretary of State Marco Rubio in preparation for his talks with the president. He planned to visit the US Capitol on Tuesday to see congressional leaders. Ahead of the visit, Netanyahu told reporters he would thank Trump for the US air strikes on Iranian nuclear sites, and said Israeli negotiators were driving for a deal on Gaza in Doha, Qatar's capital. Israeli officials also hope the outcome of the conflict with Iran will pave the way for normalisation of relations with more of its neighbours such as Lebanon, Syria and Saudi Arabia, another issue expected to be on the agenda with Trump. SECOND DAY OF QATAR TALKS Witkoff, who played a major role in crafting the 60-day ceasefire proposal at the centre of the Qatar negotiations, will travel to Doha this week to join discussions there, White House press secretary Karoline Leavitt told reporters on Monday. In a sign of continued gaps between the two sides, Palestinian sources said Israel's refusal to allow the free and safe entry of humanitarian aid into Gaza remains the main obstacle to progress in the indirect talks. Israel insists it is taking steps to get food into Gaza but seeks to prevent Hamas from diverting supplies. On the second day of negotiations, mediators hosted one round and talks were expected to resume in the evening, the Palestinian sources told Reuters. The US-backed proposal envisages a phased release of hostages, Israeli troop withdrawals from parts of Gaza and discussions on ending the war entirely. Hamas has long demanded a final end to the war before it would free remaining hostages; Israel has insisted it would not agree to halt fighting until all hostages are released and Hamas dismantled. Trump told reporters last week that he would be "very firm" with Netanyahu on the need for a speedy Gaza deal and that the Israeli leader also wanted to end the war. Some of Netanyahu's hardline coalition partners oppose halting military operations but, with Israelis having become increasingly weary of the Gaza war, his government is expected to back a ceasefire if he can secure acceptable terms. A ceasefire at the start of this year collapsed in March, and talks to revive it have so far been fruitless. Meanwhile, Israel has intensified its military campaign in Gaza and sharply restricted food distribution. Gazans were watching closely for any sign of a breakthrough. "I ask God almighty that the negotiating delegation or the mediators pressure with all their strength to solve this issue, because it has totally become unbearable," said Abu Suleiman Qadoum, a displaced resident of Gaza city. The Gaza war erupted when Hamas attacked southern Israel in October 2023, killing around 1,200 people and taking 251 hostages. Some 50 hostages remain in Gaza, with 20 believed to be alive. Israel's retaliatory war in Gaza has killed over 57,000 Palestinians, according to the enclave's health ministry. Most of Gaza's population has been displaced by the war and nearly half a million people are facing famine within months, according to United Nations estimates. Trump has been strongly supportive of Netanyahu, even wading into domestic Israeli politics last month by lashing out at prosecutors over a corruption trial against the Israeli leader on bribery, fraud and breach-of-trust charges that Netanyahu denies.
