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GM Commits $4 Billion to U.S. Auto Plants in Tariff Response

Shifting Blazer and Equinox production from Mexico to U.S. plants will help GM offset costs from Trump’s 25% vehicle tariffs.

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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General Motors announced plans to add capacity in Tennessee to build the Chevrolet Blazer, which is currently imported from Mexico and subject to US tariffs under President Trump's policies

Overview

  • General Motors will deploy $4 billion over the next two years to upgrade assembly lines at its Orion (Michigan), Fairfax (Kansas) and Spring Hill (Tennessee) factories.
  • The investment will boost U.S. production capacity to more than two million vehicles annually, up from about 1.5 million.
  • Assembly of the Chevrolet Blazer and Equinox will move from Mexican facilities to U.S. plants, and an idled Michigan plant will resume making gas-powered models.
  • GM projects that the expansion will create between 3,000 and 4,000 new American jobs as production ramps up.
  • CEO Mary Barra said the plan underscores GM’s commitment to domestic manufacturing and defends tariffs as a way to level the playing field for U.S. automakers.