GM to Invest $4 Billion in U.S. Plants as Tariffs Pressure Mexican Production

General Motors announced a $4 billion investment in U.S. assembly plants as the automaker moves to shift production of two key Chevrolet models currently built in Mexico. The decision comes amid limited progress in trade negotiations between the Trump administration and Mexican officials, and follows new U.S. tariffs on imported vehicles and parts.

The investment will include moving the gas-powered Chevrolet Blazer production from Mexico to GM’s Spring Hill plant in Tennessee, and adding Chevrolet Equinox production to its Fairfax plant in Kansas beginning in 2027. GM also plans to repurpose its idled Orion Assembly plant in Michigan to manufacture gas-powered SUVs and trucks instead of electric vehicles.

The announcement is expected to be viewed as a win for President Trump’s trade policies, which imposed 25% tariffs on imported vehicles in April and on many auto parts in May.

“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said GM CEO Mary Barra. “This investment shows our ongoing commitment to build vehicles in the U.S. and support American jobs.”

United Auto Workers President Shawn Fain welcomed the move, crediting the tariffs for encouraging automakers to return jobs to the U.S. “The race to the bottom is over,” Fain said.

GM said the investment would give it capacity to build over two million vehicles annually in the U.S. through 2027. The company confirmed its overall 2025 capital spending guidance remains between $10 billion and $11 billion, with a long-term range of $10 billion to $12 billion per year.

While GM has been reassessing its North American manufacturing strategy, the company had previously stated it could offset 30% to 50% of tariff costs without major new investments. Tuesday’s announcement suggests a strategic pivot, as GM looks to reduce reliance on imports and strengthen domestic operations.