General Motors announced Tuesday that it plans to invest $4 billion into three U.S. assembly plants, part of a broader move that includes relocating or expanding production of two vehicles currently built in Mexico.
This announcement comes amid stalled trade negotiations between the Trump administration and Mexican officials. Earlier in the year, President Donald Trump imposed 25% tariffs on imported vehicles and a similar tariff on many auto parts entering the U.S.
According to GM, the investment will support the assembly of the gas-powered Chevrolet Blazer and Chevrolet Equinox—both currently manufactured in Mexico—at two U.S.-based plants.
Additionally, the company will convert an idled plant in Michigan, which had been designated to produce all-electric trucks, to manufacture gas-powered SUVs and trucks by 2027. GM declined to comment on the future of its Ramos Arizpe plant in Mexico that currently assembles the Blazer and Equinox.
However, a source familiar with the plans revealed that Blazer production will fully relocate to the U.S., while production of the Equinox will be additive to the existing output in Mexico, which will continue to supply other markets.
This investment is likely to be seen as a validation of President Trump’s trade and tariff policies, especially the auto tariffs that went into effect in April for vehicles and May for parts.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” GM CEO Mary Barra stated in a press 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.”
The company said the investment, spread through 2027, will enable GM to assemble over two million vehicles annually in the U.S. As part of the expansion, GM’s Fairfax Assembly plant in Kansas will begin producing the gas-powered Chevrolet Equinox by mid-2027.
The gas-powered Chevrolet Blazer will be added to the Spring Hill Assembly plant in Tennessee starting in 2027, according to the automaker.
UAW President Shawn Fain, a supporter of Trump’s tariffs, praised GM’s decision and the impact of the levies. “GM’s decision to invest billions in American plants and prioritize U.S. workers is exactly why we spoke up in favor of these auto tariffs,” Fain said in a statement Wednesday.
“The writing is on the wall: the race to the bottom is over. We have excess manufacturing capacity at our existing plants, and auto companies can easily bring good union jobs back to the U.S.”
GM confirmed that its capital spending guidance for 2025 remains unchanged, projected at $10 billion to $11 billion. However, the company anticipates annual capital expenditures in the range of $10 billion to $12 billion through 2027.
For months, GM has been reassessing its North American manufacturing footprint in light of the tariffs. Executives had previously indicated they would take a “wait and see” approach until they had more clarity on the regulatory and trade environment.
GM CFO Paul Jacobson, speaking at a Bernstein investor event last month, suggested the impact of the tariffs might not be as severe as initially feared, citing potential trade agreements and the company’s ability to absorb some of the added costs.
The automaker has previously stated it could offset 30% to 50% of the North American tariffs without needing to deploy new capital in the short term. During the same investor event, CEO Mary Barra noted that GM would demonstrate resilience and look to strengthen its operations by seizing opportunities presented by strong vehicle performance.
One such shift appears to be a retreat from aggressive electric vehicle expansion. The Orion Assembly plant in suburban Detroit, which was once set to become GM’s second all-electric facility in the U.S., will now be retooled to produce gas-powered vehicles.