GM Pledges $4B To Boost US Output Amid Trump Tariff Pressure, But Retail Remains Cautious

General Motors (GM) has announced a sweeping $4 billion investment to expand its U.S. manufacturing footprint over the next two years, signaling a shift in strategy after the Trump administration's escalating automotive tariffs.

The investment will allow GM to increase its domestic production capacity to more than two million vehicles annually. 

The company said the upgrades are designed to support strong demand for its product range, which includes full-size pickups and SUVs as well as lower-priced electric cars.

The shift will bring new production responsibilities to key plants. 

In Michigan, the Orion Assembly plant will begin making full-size gas-powered SUVs and trucks in early 2027, while GM's Factory ZERO in Detroit will focus exclusively on electric vehicles like the Silverado EV and Hummer EV. 

In Kansas, the Fairfax Assembly plant will take on production of the gasoline-powered Chevrolet Equinox in 2027. It will begin manufacturing the next-generation Chevrolet Bolt EV before the end of the year. 

In Tennessee, GM's Spring Hill facility will add gas-powered Chevrolet Blazer production by 2027, joining Cadillac's Lyriq and Vistiq EVs already built at the site.

According to CNBC, the Chevrolet Blazer and Equinox models are currently manufactured in Mexico. Bringing their production stateside is likely to be viewed as a policy win for Trump's tariff strategy, which imposed new levies on imported vehicles in April and various auto parts in May.

This announcement follows GM's previously disclosed $888 million investment in its Tonawanda, New York, plant to produce next-generation V8 engines. 

“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. 

On Stocktwits, retail sentiment toward GM ended on a 'neutral' note late Tuesday, suggesting investor caution despite a modest uptick in the stock during after-market trading.

GM currently leads the U.S. market in full-size pickup and SUV sales and ranks second in EV sales nationwide, with 13 electric models offered across Chevrolet, Cadillac, and GMC. Chevrolet, in particular, has emerged as the fastest-growing EV brand in the country.

The company said its 2025 capital spending forecast remains unchanged at $10–$11 billion, with similar levels projected through 2027.

GM stock has lost more than 8% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN11062025007385015968ID1109659870