General Motors unveils $4bn US manufacturing overhaul

Published: 2025-06-12 14:15:09 ET GM

Published on 06/12/2025 at 14:15

US automotive giant General Motors (GM) has outlined a $4bn domestic production expansion over the next two years, repositioning several vehicle lines from Mexican facilities to American plants amid evolving trade policy pressures, Associated Press reported.

The comprehensive restructuring affects both conventional and electric vehicle manufacturing as the automaker adapts to potential tariff exposure threatening industry margins.

The reallocation involves transferring petrol-engine Chevrolet Blazer and Equinox assembly from south-of-the-border operations to domestic facilities starting in 2027. Spring Hill's Tennessee plant will absorb Blazer production, whilst Kansas operations in Kansas City will handle Equinox manufacturing.

Meanwhile, GM's Michigan facility in Orion Township will pivot from electric vehicle focus to conventional full-size SUV and light-duty truck assembly, reflecting weakened consumer appetite for battery-powered alternatives.

The strategic shift follows US President Trump's fluctuating tariff regime, which initially imposed 25% levies on automotive imports before partial relaxation in April. Industry analysts warn such trade barriers could inflate consumer prices whilst undermining global competitiveness.

The capital commitment positions GM to produce over 2mn vehicles annually within US borders. Chief Executive Mary Barra reinforced the manufacturer's dedication to domestic job creation and American manufacturing prowess.

GM's extensive US footprint encompasses 50 production and component facilities spanning 19 states, directly and indirectly supporting employment for nearly 1mn Americans through manufacturing, supply chains and retail networks.

The company has trimmed annual profit forecasts, anticipating $4bn-$5bn tariff-related headwinds throughout 2025.