Tariffs Update: GM Announces $4 Billion Investment In US Production

GM is the latest automaker to shuffle its manufacturing strategy as a result of President Trump’s tariffs on car imports. The auto giant says it’s investing $4 billion into manufacturing inside the United States, shifting some of the operations it has going in Mexico at the moment.

Despite tariffs, new car prices slightly decreased in May.

According to the automaker, the move will take about two years and will involve a number of models lines. One big shift is the Orion Township facility will start making full-size SUVs and trucks, not EVs as previously announced.

Instead, Factory ZERO in Detroit-Hamtramck will be the only facility making the Chevy Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer. From what we’ve seen, demand for those and other electric vehicles has softened drastically.

Both the Chevy Blazer and Equinox are coming to this side of the border. Blazer production will begin in Spring Hill, Tennessee in 2027, the same year Equinox assembly will start in Kansas City.

Under the new plan, GM would be able to pump out over two million vehicles per year here in the United States. That lessens dramatically how many cars, trucks, and SUVs the company is importing, which in turn leads to savings on tariffs.  

This is exactly what President Trump has been trying to accomplish with the tariffs, moving manufacturing back to the US. It seems GM CEO Mary Barra wants to make sure everyone knows she’s onboard with that agenda.

“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said Mary Barra, Chair and CEO. “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs. We’re focused on giving customers choice and offering a broad range of vehicles they love.”

Image via GM