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4mo ago

GM Commits $4 Billion to Expand U.S. Gas and Electric Vehicle Production

Shifting assembly from Mexico to Michigan, Kansas and Tennessee seeks tariff relief through relocating popular models, aligning production with market needs.

General Motors vehicles are ready for export in South Korea on May 20. The company's CEO, Mary Barra, told CNN earlier new tariffs would cost the company up to $5 billion.
FILE - Vehicles move along the 2023 Chevrolet Bolt EV and EUV assembly line at the General Motors Orion Assembly June 15, 2023, in Lake Orion, Mich. (AP Photo/Carlos Osorio, File)
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Overview

  • GM will invest $4 billion over two years to boost capacity at its Orion Township, Michigan; Kansas City, Kansas; and Spring Hill, Tennessee plants.
  • The company plans to move Chevrolet Blazer and Equinox assembly from Mexico to U.S. factories to avoid the 25 percent vehicle tariff.
  • Orion Assembly will switch from planned electric-vehicle output to gas-powered SUVs and pickups starting in early 2027 after EV demand slowed.
  • Fairfax and Spring Hill facilities will be configured for both internal combustion and electric models to adapt to shifting consumer preferences.
  • GM anticipates the investment will raise U.S. annual assembly capacity by about 300,000 vehicles, exceed two million units and preserve roughly 3,000 to 4,000 jobs.