General Motors (GM) has announced it will invest nearly $4 billion USD in three of its assembly plants in the United States over the next two years. The objective is to increase vehicle production at those facilities, including both gasoline models and upcoming all-electric vehicles.
The plants receiving injections of funds include the Orion (Michigan), Fairfax (Kansas) and Spring Hill (Tennessee) facilities. GM did not specify the exact amounts allocated to each of the three plants, but it is known that will receive these funds.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise. 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.”
- Mary Barra, GM Chair and CEO
What to expect from each plant's production
The Orion plant, which has been undergoing renovations since late 2023 in anticipation of electric truck production, will now assemble SUVs and trucks starting in 2027. The Factory Zero plant will handle continued production of electric SUVs and trucks, including the Chevrolet Silverado EV, GMC Sierra EV, GMC Hummer EV and Cadillac Escalade IQ.
The Fairfax plant will be prepped for the production of the new Bolt, as well as the Chevrolet Equinox ICE version starting in mid-2027. That model is currently manufactured in Mexico, and production will continue there as well. The Fairfax plant will thus supply the American market and avoid U.S. import tariffs.
GM also said more affordable electric vehicles would be assembled at the Fairfax plant. This will serve to replace the production of the Chevrolet Malibu and the Cadillac XT4 compact SUV that were previously built there.
The Spring Hill plant will add the gas-engine Chevrolet Blazer to its production schedule as of 2027; it already builds the Cadillac XT5 and the Cadillac Lyriq and Vistiq electric SUVs.
The impact of tariffs
Evidently, all these moves are difficult to dissociate from the tariff war initiated by the U.S. administration. General Motors estimates that the tariffs will cost it between $4 and $5 billion USD this year. The company has no choice but to adapt.