General Motors Co. pledged about $4 billion in capital investments for three U.S. assembly plants over the next two years, and will shift production of some SUVs and light trucks from Mexican operations to those plants in Michigan, Kansas, and Tennessee. The plan is an acknowledgement of GM’s intention to adjust its production programs to comply with the 25% U.S. tariffs on imported vehicles and auto parts not addressed by the U.S.-Mexico-Canada pact.
According to the automaker’s statement, the new production strategy will give GM capacity for over 2 million U.S.-built vehicles per year.
“Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs,” stated GM chairwoman and CEO Mary Barra. “We're focused on giving customers choice and offering a broad range of vehicles they love.”
The new investment strategy also signals GM’s renewed commitment to internal combustion engine vehicles, following several years of heavy investments in electric vehicle development and production capabilities. It follows a recent announcement of an $888-million plan to expand V-8 engine production at Tonawanda, N.Y.
The automaker noted that it’s 2025 capital spending guidance remains at $10 to $11 billion, and $10 to $12 billion through 2027, indicating increased domestic investment.
The capital investments are targeted at the GM Orion Assembly plant in Orion Township, Mich., where GM will be producing full-size SUVs and light pickups in 2027, “to help meet continued strong demand,” according to an announcement; the GM Fairfax Assembly plant in Kansas City, Kan.; and the GM Spring Hill Manufacturing plant in Spring Hill, Tenn.
Previously, GM announced it will shift Chevy Silverado and GMC Sierra pickup production from Silao, Mexico, to the Fort Wayne (Ind.) Assembly plant.
Orion had been one of the locations where GM had planned to produce EVs, starting in 2026, but now it indicates that the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EV pickups and SUVs will be built at the Factory Zero operation, in Detroit-Hamtramck, Mich.
The GM Fairfax Assembly plant in Kansas City, Kan., will be updated for production of Chevy Equinox SUVs, starting in 2027. It is also slated to assemble the Chevrolet Bolt EV and a new, “affordable” EV model.
The Spring Hill (Tenn.) Manufacturing plant will start producing Chevrolet Blazer SUVs in 2027, while continuing to produce the Cadillac Lyriq and Vistiq EVs, and the Cadillac XT5 luxury SUV. Currently, the Blazer is assembled at Ramos Arizpe, Mex.
