Sunday, 15 June 2025

Vehicle Manufacturer To Invest BILLIONS In U.S. Production


General Motors announced it plans to invest approximately $4 billion in its domestic manufacturing plants to increase U.S. production.

The vehicle manufacturer wants to increase domestic production of both gas and electric automobiles.

Per CNBC:

The Detroit automaker announced the plans Tuesday, as there have been few indications of progress in trade talks between the Trump administration and Mexican leaders. Earlier this year, President Donald Trump implemented 25% tariffs on imported vehicles and 25% tariffs on many auto parts imported into the U.S.

GM said the investment will add assembly of the gas-powered Chevrolet Blazer and Chevrolet Equinox that are currently produced in Mexico to two other plants in the U.S. and convert a large idled plant in Michigan — formerly expected to build all-electric trucks — to make gas-powered SUVs and trucks in 2027.

GM declined to discuss the future of the Ramos Arizpe plant that currently produces the vehicles in Mexico. A source familiar with the plans said production of the Blazer will fully move to the U.S. from Mexico, while production of the Equinox is expected to be additive to the Mexican plant, which also will produce for other markets.

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“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,” GM stated.

“Plants in Michigan, Kansas, and Tennessee will expand finished vehicle production of several of GM’s most popular vehicles,” it added.

From The Detroit News:

Full-size SUVs and light-duty pickups are coming to Orion, which was being retooled to build electric trucks before market demand waned. The gas-powered Equinox compact SUV is slated for Fairfax, Kansas. And the gas-powered Blazer, controversial when it was launched at a GM plant in Mexico, will be produced in Spring Hill, Tennessee, the sources confirmed.

After The Detroit News contacted the Detroit automaker Tuesday afternoon about the developments, the automaker posted details on its website.

“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” GM CEO Mary Barra said in a statement. “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.”

The move is partly driven by increased demand for high-profit SUVs and partly an effort to limit exposure to pricey import tariffs enacted by President Donald Trump. His goal: to force a manufacturing renaissance in the industrial heartland and beyond. When GM announced plans in 2022 to retool Orion for EV truck production, the state estimated the project would create 2,300 jobs and retain 1,000.


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