GM Riding IC Engine, Onshoring Waves

The automaker posted strong Q2 earnings on strong domestic demand as it continues to increase its internal combustion engine capacity and domestic vehicle production volumes.

In its Q2 2026 earnings call with investors, General Motors Corp. confirmed that its onshoring efforts will continue going forward as it strives to reduce its exposure to U.S. import tariffs, but also to serve steady domestic demand for its vehicles. In particular, that demand is centered on internal-combustion engine pickup trucks and sport utility vehicles.

GM’s quarterly earnings report included quarterly earnings (EBIT) of $3.9 billion, up close to 30% year-over-year. It also increased its 2026 profit forecast by $500 million for the second time this year, now targeting $14 to $16 billion for the full year.

The strength of demand is supporting GM’s shift in its product planning toward gas-powered vehicles and away from the battery-electric vehicles that shaped its strategy earlier this decade.

In June 2025, GM announced a $4-billion, two-year plan to increase its U.S. assembly capacity to more than 2 million vehicles per year. That plan came less than a month after GM started an $888-million project to increase internal combustion engine capacity at its Tonawanda (N.Y.) Propulsion plant.

In April of this year GM announced another, $150-million capital investment plan to expand V-8 engine block production at the Saginaw (Mich.) Metal Casting Operations.

GM’s onshoring efforts also began in 2025, starting last April with the decision to shift Chevrolet and GMC light-duty truck assembly from Canada and Mexico to Fort Wayne, Ind.

Other GM assembly plants due to gain from the onshoring trend include the Spring Hill, Tenn., location, which will be the site of gas-powered Chevy Blazer assembly starting next year, in addition to the Cadillac SUV assembly already there; and the Orion Twp., Mich., Assembly plant where producing full-size SUV and light pickup assembly will be expanded, to start in 2027.

One of the highest-profile onshoring steps involves the expansion at GM’s Fairfax, Kan., Assembly plant, where the automaker is locating production of the Buick Envision SUV, a crossover vehicle that has been manufactured exclusively by the SAIC-General Motors Corp. Ltd. joint venture in China since 2014.

About the Author

Robert Brooks

Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries.

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