Dive Brief:
- General Motors plans to invest roughly $4 billion in its U.S. assembly plants in three states over the next two years to boost output of both gas and electric vehicles, the company announced in a press release Tuesday.
- The investment will spread across the automaker’s plants in Michigan, Kansas and Tennessee and will expand finished vehicle production capacity of some of the company’s best-selling vehicles.
- The plans to boost U.S. manufacturing follows an $888 billion investment commitment announced last month in Buffalo, New York, to produce GM’s next-generation V8 engine.
Dive Insight:
As automakers work to lessen the impact of tariffs, GM has now committed nearly $3 billion to boost production in the U.S. over the next several years. In its Q1 earnings report, the company lowered its 2025 earnings guidance to reflect an anticipated $4 billion to $5 billion impact from newly imposed tariffs on imported automobiles and parts.
But the automaker said its 2025 capital spending guidance remains unchanged between $10 billion and $11 billion. With the latest investment announcement, GM expects its annual capital spending will be in a range of $10 billion to $12 billion through 2027.
The automaker says the investments will provide it with the ability to build 2 million vehicles a year in the U.S.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said Mary Barra, GM Chair and CEO, in the release. “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs.”
The investment in the Orion Assembly plant in Michigan will be used to build additional gas-powered full-size SUVs and light duty pickup trucks to help meet strong demand, the release states.
GM’s Factory ZERO in Detroit-Hamtramck, Michigan, will remain its electric vehicle production hub for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EV pickup and SUV.
The investment at Fairfax Assembly in Kansas will support production of the gas-powered Chevrolet Equinox beginning in mid-2027, which is one of the automaker’s best selling vehicles. GM said sales of the Equinox were up more than 30% year-over-year in the first quarter of this year.
The Fairfax plant also remains on track to begin building the 2027 Chevrolet Bolt EV by the end of this year. But the company plans to make additional investments in Fairfax to produce its more affordable, next generation EVs.
GM also aims to boost production at its Spring Hill Manufacturing plant in Tennessee. The company plans to begin production of the gas-powered Chevrolet Blazer in Spring Hill starting in 2027. The Blazer is currently assembled at GM’s Ramos Arizpe Assembly plant in Mexico and its move back to the U.S. will help GM mitigate the impact of tariffs.
The Spring Hill plant will continue to build the electric Cadillac Lyriq and Vistiq, as well as the Cadillac XT5.
“Today’s news goes well beyond the investment numbers — this is about hardworking Americans making vehicles they are proud to build and that customers are proud to own," said GM President Mark Reuss in the release.
GM currently has a network of 50 U.S. manufacturing plants and parts facilities across 19 states, including 11 vehicle assembly plants that together employ nearly one million workers.
"As you travel the country, you can see firsthand the scale of our manufacturing footprint and the positive economic impact on our communities and our country,” said Reuss.
