General Motors (GM) announced a $4 billion investment over the next two years to enhance production at its U.S. plants. This funding will help GM increase its annual vehicle assembly capacity in the United States to over 2 million units, up from the current 1.7 million.
The investment targets three key plants in Michigan, Kansas, and Tennessee. At the Orion Assembly plant in Michigan, GM will shift production from electric vehicles to gas-powered full-size SUVs and light-duty pickups starting in early 2027.
The Detroit-Hamtramck Factory ZERO will focus on assembling electric models like the Chevrolet Silverado EV and GMC Hummer EV.
Meanwhile, the Fairfax Assembly plant in Kansas City will produce the gas-powered Chevrolet Equinox and the electric Chevrolet Bolt EV. The Spring Hill plant in Tennessee will manufacture the gas Chevrolet Blazer alongside Cadillac electric models.
GM CEO Mary Barra emphasized that American innovation and manufacturing expertise will drive the future of transportation. She supports the administration’s tariffs on imported vehicles and parts, which aim to strengthen domestic auto manufacturing and create American jobs.
The company currently operates 50 manufacturing and parts facilities across 19 states, including 11 vehicle assembly plants. GM projects its annual capital spending to reach $10 billion to $12 billion through 2027, balancing investments between electric vehicles and profitable gas-powered models.
This move reflects GM’s strategy to maintain production flexibility amid fluctuating demand for electric vehicles and ongoing tariff pressures. It also signals a commitment to U.S. manufacturing jobs and supply chains while preparing for a gradual transition to zero-emission vehicles by 2035.
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