General Motors is making a major shift in its manufacturing strategy, announcing a $4 billion investment in U.S. auto plants. The move will bring production of two popular Chevrolet models—previously built in Mexico—back to American soil. The decision follows the implementation of 25% tariffs on imported vehicles and auto parts, a policy designed to push automakers toward domestic production.
The investment will be spread across three U.S. assembly plants, with significant expansions planned for Michigan, Kansas, and Tennessee. GM’s Orion Assembly Plant in Michigan, originally slated for electric truck production, will now focus on gas-powered full-size SUVs and light-duty pickup trucks starting in 2027. The Chevrolet Equinox, currently built in Mexico, will begin production at Fairfax Assembly in Kansas in mid-2027. Meanwhile, the Chevrolet Blazer will shift to Spring Hill Manufacturing in Tennessee.
President Trump’s trade policies have reshaped the auto industry, forcing companies to reconsider their reliance on foreign production. GM’s decision to move manufacturing back to the U.S. aligns with the administration’s push to strengthen domestic industry and protect American jobs.
The numbers behind the shift are significant. GM expects the investment to increase U.S. vehicle production to over two million units annually. The company has also adjusted its financial outlook, factoring in $4 billion to $5 billion in tariff exposure. CEO Mary Barra emphasized GM’s commitment to American manufacturing, stating, “We believe the future of transportation will be driven by American innovation and manufacturing expertise.”
Sources
https://www.cbsnews.com/detroit/news/general-motors-4-billion-investment-orion-assembly-plant/