DETROIT — General Motors has announced a substantial investment of $4 billion towards enhancing operations at three assembly plants in the United States. This strategic move will also involve relocating or augmenting the production of two vehicles currently manufactured in Mexico to American facilities.
Details of the investment were revealed by the Detroit-based automaker on Tuesday, amid ongoing uncertainties regarding trade negotiations between the Trump administration and Mexican officials. Earlier this year, the administration enacted a 25% tariff on imported vehicles, alongside similar tariffs on numerous auto parts brought into the U.S.
According to GM, the funding will facilitate the assembly of gas-powered Chevrolet Blazer and Chevrolet Equinox models, which are presently produced in Mexico. These models will be transitioned to two different U.S. plants, while a large, currently idle facility in Michigan — initially intended for the production of electric trucks — will be repurposed to manufacture gas-powered SUVs and trucks by 2027.
When questioned about the future of the Ramos Arizpe plant that presently produces these vehicles in Mexico, GM refrained from offering insights. However, a source close to the situation indicated that production of the Blazer is set to fully shift to U.S. plants from Mexico, whereas the Equinox production is anticipated to be supplemental to the operations at the Mexican plant, which will continue to serve other markets.
The announcement of this investment is likely to be perceived as a triumph for President Trump’s automotive policies and the tariffs imposed, which took effect earlier this year in April and May respectively.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” GM CEO Mary Barra stated in a company release. “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.”
This new investment, set to roll out through 2027, positions GM to assemble over two million vehicles annually within the U.S., according to company reports.
As part of the forthcoming enhancements, GM’s Fairfax Assembly in Kansas will initiate production of the gas-powered Chevrolet Equinox by mid-2027. Additionally, the Chevrolet Blazer will be manufactured at the Spring Hill Assembly in Tennessee starting in the same year.
The automaker has maintained its capital spending guidance for 2025, projecting an allocation between $10 billion and $11 billion, while estimating annual spending between $10 billion and $12 billion for the years leading to 2027.
In reaction to the tariffs, GM has been assessing its North American manufacturing strategy for several months. Company executives have indicated a cautious “wait and see” approach, holding off on major decisions until the regulatory landscape becomes clearer, especially concerning auto tariffs.
During a Bernstein investor event late last month, GM CFO Paul Jacobson expressed optimism, suggesting that the actual impact of the tariffs may not be as severe as initially anticipated. He pointed to potential trade agreements with other nations and the automaker’s capacity to offset some costs associated with the tariffs as positive developments.
GM expects to mitigate approximately 30% to 50% of the North American tariffs without needing to invest capital in the short term.
At the same investor event, CEO Mary Barra conveyed confidence in the company’s resilience and reiterated their commitment to strengthening their business model while seizing opportunities presented by successful vehicle sales.
Despite this optimistic outlook, it appears GM may temper its investments in electric vehicles, as the Orion Assembly plant in suburban Detroit is slated for retrofitting to produce gas-powered products instead of becoming the company’s second exclusive EV facility in the U.S.
