GM to invest $4 billion in US plants to boost vehicle production

Investing.com -- General Motors (NYSE:GM) announced Tuesday plans to invest approximately $4 billion over the next two years in its domestic manufacturing plants to increase production of both gas and electric vehicles in the United States.

The investment will enable GM to assemble more than two million vehicles annually in the U.S. This follows the company’s recently announced $888 million investment in the Tonawanda Propulsion plant near Buffalo, New York, which will support GM’s next-generation V-8 engine.

The expansion will target plants in three states. In Michigan, Orion Assembly will begin producing gas-powered full-size SUVs and light duty pickup trucks in early 2027 to meet strong demand. This will allow Factory ZERO in Detroit-Hamtramck to focus exclusively on electric vehicles including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV pickup and SUV.

Fairfax Assembly in Kansas City, Kansas will add production of the gas-powered Chevrolet Equinox beginning in mid-2027. Sales of the recently redesigned Equinox increased more than 30% year-over-year in the first quarter of 2025. The Fairfax plant remains scheduled to begin manufacturing the 2027 Chevrolet Bolt EV by the end of this year, with additional future investments expected for GM’s next generation of affordable EVs.

In Tennessee, Spring Hill Manufacturing will start producing the gas-powered Chevrolet Blazer in 2027, alongside several Cadillac models including the LYRIQ and VISTIQ EVs, and the XT5.

"We believe the future of transportation will be driven by American innovation and manufacturing expertise," said Mary Barra, Chair and CEO. "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."

GM maintains a network of 50 U.S. manufacturing plants and parts facilities across 19 states, including 11 vehicle assembly plants. The company reports that nearly one million Americans depend on GM for their livelihood, including employees, suppliers, and dealers.

Mark Reuss, GM President, emphasized the broader impact of the investment: "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. 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."

The automaker continues to strengthen its market position in the U.S., gaining share in both gas and electric vehicles. GM is on course for its sixth consecutive year as the U.S. full-size pickup sales leader and its 51st straight year leading in full-size SUVs. In the second half of 2024, GM became the second-largest seller of electric vehicles in the U.S. market with a portfolio of 13 EV models across its Chevrolet, Cadillac, and GMC brands. Chevrolet has emerged as the fastest-growing EV brand and ranks second among all EV brands in sales.

GM’s capital spending guidance for 2025 remains unchanged at between $10 billion and $11 billion. The company projects its annual capital spending will range from $10 billion to $12 billion through 2027, reflecting increased U.S. investment, prioritization of key programs, and efficiency offsets.

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