General Motors announced a $4 billion investment into its American manufacturing footprint, a move that includes shifting production of two major Chevrolet models from Mexico to U.S. plants. The announcement comes at a pivotal moment for the auto industry, as new trade tariffs on Mexican-produced vehicles and parts—introduced earlier this year by the Trump administration—begin to reshape the manufacturing landscape.
The investment will target three major U.S. facilities. Starting in 2027, the Chevrolet Blazer will be assembled at the Spring Hill Assembly plant in Tennessee, and the Chevrolet Equinox will be produced at the Fairfax Assembly plant in Kansas. Both models are currently made in Mexico. In addition, GM will convert its idled Orion Assembly plant in Michigan into a hub for manufacturing gas-powered SUVs and trucks, reversing earlier plans to make it a dedicated electric vehicle facility.
GM CEO Mary Barra emphasized the company’s commitment to American industry. “We believe the future of transportation will be driven by American innovation and manufacturing expertise,” she said. “This investment reinforces our dedication to U.S. production and to offering consumers a full range of vehicles.”
The decision is widely seen as a response to President Trump’s 25% tariff on imported vehicles and key auto parts. These levies, which took effect this spring, have pushed automakers to reassess the viability of foreign production. The move by GM is likely to be viewed as a validation of the administration’s economic strategy, which has prioritized strengthening domestic industry and bringing jobs back to American soil.
Union leadership also welcomed the development. United Auto Workers President Shawn Fain praised the tariffs and the company’s reinvestment in U.S. plants, stating, “The writing is on the wall: the race to the bottom is over. Auto companies can easily bring good union jobs back to the U.S., and this shows exactly how.”
The investment will allow GM to produce more than two million vehicles annually in the United States. While GM has not clarified the long-term fate of its Ramos Arizpe facility in Mexico, sources indicate that Blazer production will be fully relocated to the U.S., while Equinox output in Mexico may continue to serve international markets.
The company’s overall capital spending plans remain on track, with 2025 guidance unchanged at $10 billion to $11 billion and projected annual spending of $10 billion to $12 billion through 2027. CFO Paul Jacobson recently noted that the financial impact of the tariffs might be less severe than initially feared, with GM anticipating an ability to absorb 30% to 50% of the costs without additional capital deployment.
