(WWJ) General Motors says it's investing $4 billion in its U.S. operations over the next two years, and shifting the production of several products from Mexico to the U.S.
"This seems to be a direct reaction to the tariffs and the Trump administration's push for more investment in the U.S.," says analyst Sam Fiorani of Auto Forecast Solutions.
GM says the investment will give it the ability to assemble more than two million vehicles per year in the U.S.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said GM CEO Mary Barra. “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.”
In the Detroit area, the announcement confirms that GM is scrapping plans to turn the Orion plant into an EV facility. That plant, which has been closed for retooling since 2023, will make SUV's and pickups when it reopens in 2027.
GM didn't specify which products will be built at Orion, but it currently makes its full-size pickups at plants in the United States, Canada and Mexico.
"Some of the production from Canada and Mexico could move there. They build quite a few in Toluca Mexico, and there's some overflow production in Canada at this point," says Fiorani.
Fiorani also says Orion may be needed for extra production of GM's big SUV's, which are currently built in Arlington, Texas, near Dallas.
Production of electric vehicles will be concentrated at Factory Zero in Detroit.
The decision will also bring production of the Chevy Blazer and Equinox from Mexico to the U.S. GM isn't saying how they will replace that production in Mexico.
“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.”
Here is how GM detailed the investments:
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’s 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. 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 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.
GM has 50 manufacturing and parts facilities in the US, including 11 vehicle assembly plants.