General Motors plans to invest $4 billion in three American assembly plants, including moving or increasing production of two Mexican-produced vehicles to U.S. plants.

Detroit

General Motors has announced a $4 billion investment in three of its U.S. manufacturing plants. This move includes shifting production of the internal combustion engine versions of the Chevy Equinox and Chevy Blazer from Mexico to plants in Kansas and Tennessee, as well as retooling a Michigan plant to produce gas-powered SUVs and pickup trucks instead of electric vehicles.

The company is not building new facilities or closing any overseas plants, but is instead making use of excess capacity in its U.S. operations. The changes are a response to tariffs on imported vehicles and are expected to increase domestic production by up to 250,000 vehicles annually once fully implemented.

GM to invest $4 billion in its U.S. manufacturing plants

Hey Melissa, take a look at shares of General Motors, the company announcing that it plans to make a move when it comes to production that is specifically related to the tariffs that President Trump has put on vehicles being imported that were being produced in Mexico and Canada. As a result of those tariffs being in place and looking to build more vehicles in this country, General Motors has announced that it is going to be converting one plant in Orion, Michigan that was going to be building electric vehicles is being retooled for that. They're going to switch. It will be retooled to do gas-powered engine vehicle production of SUVs and pickup trucks. That's one part of the news. The other part, two vehicles, internal combustion engine versions of the Chevy Equinox and the Chevy Blazer that are currently built in Mexico, those are going to be built, one at a plant in Fairfax, Kansas, another at a plant in Spring Hill, Tennessee. Essentially, General Motors is using the excess capacity that it has in the United States to increase production of these vehicles. We don't know exactly how many, maybe 200, 250,000 vehicles annually once this is all said and done in 2027. But again, it's a $4 billion commitment that General Motors is going to be making, converting the plant in Michigan, adding production of those two vehicles, moving them from Mexico up to the United States. And this is clearly General Motors saying, OK, this is the environment we're in now. We're leaving sales on the table if we're just going to try to keep importing from Mexico. Instead, we're going to be moving some production here to the U.S. And this will take place over the next couple of years, Melissa. But the environment might be different in four years. I mean, that's sort of, you know, that's a difficult thing for these companies, right? Well, Melissa, here's the noteworthy part of this. What General Motors is not doing, it is not building a new plant. It is not shutting down a plant overseas. It's essentially saying, what can we do here with excess capacity to increase production here?

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Breakdown