GM To Invest $4 Billion In Expanded U.S. Production

Whether you are a fan of the tariffs or not, the automakers are investing more and more in America.  This week, General Motors announced plans to invest about $4 billion over the next two years in its domestic manufacturing plants to increase U.S. production of both gas and electric vehicles.

The new investment will give GM the ability to assemble more than two million vehicles per year in the U.S. This announcement comes on the heels of the company’s recently announced plan to invest $888 million in the Tonawanda Propulsion plant near Buffalo, New York to support GM’s next-generation V-8 engine.

Plants in Michigan, Kansas, and Tennessee will expand finished vehicle production of several of GM’s most popular vehicles:

• Orion Assembly, Orion Township, Michigan: GM will begin production of gas-powered full-size SUVs and light duty pickup trucks at Orion in early 2027 to help meet continued strong demand. As a result, GM says its Factory ZERO in Detroit-Hamtramck, Michigan will be the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV pickup and SUV.
• Fairfax Assembly, Kansas City, Kansas: Fairfax Assembly will support production of the gas-powered Chevrolet Equinox beginning in mid-2027. The automaker says sales of the recently redesigned Equinox were up more than 30% year-over-year in the first quarter of 2025. Fairfax remains on track to begin building the 2027 Chevrolet Bolt EV by the end of this year. GM says it expects to make new future investments in Fairfax for GM’s next generation of affordable EVs.
• Spring Hill Manufacturing, Spring Hill, Tennessee: GM will add production of the gas-powered Chevrolet Blazer at Spring Hill starting in 2027, alongside the Cadillac LYRIQ and VISTIQ EVs, and the Cadillac XT5.

“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.”

GM operates 50 U.S. manufacturing plants and parts facilities in 19 states, including 11 vehicle assembly plants. The automaker says nearly one million people in the U.S. depend on GM for their livelihood, including employees, suppliers, and dealers.

“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. "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.”

GM says it continues to post strong U.S. sales, gaining market share in both gas and electric vehicles. The company says it's on track to deliver its sixth consecutive year as the U.S. full-size pickup sales leader, and its 51st straight year leading in full-size SUVs. In the second half of 2024, GM reports that it became the #2 seller of electric vehicles in the U.S. market, crediting its diverse portfolio of 13 EV models from Chevrolet, Cadillac, and GMC. The automaker says Chevrolet is now the fastest-growing EV brand and #2 among all EV brands in sales.

GM’s also reported this week that its 2025 capital spending guidance is unchanged at between $10 billion and $11 billion. Going forward, GM says expects its annual capital spending will be in a range of $10 billion to $12 billion through 2027, reflecting increased investment in the U.S., the prioritization of key programs, and efficiency offsets.