General Motors To Invest $4 Billion In U.S. Plants As Tariffs Bite

General Motors (GM) says it is refocusing on its U.S. operations as import tariffs on foreign made vehicles and parts impact the Detroit automaker.

GM, as the company is known, says it plans to invest $4 billion U.S. in three American assembly plants, including moving two Mexican-produced vehicles back to the U.S.

The shift comes as there has been little progress in trade talks between the administration of U.S. President Donald Trump and the Mexican government.

Trump has implemented 25% tariffs on all imported vehicles and many auto parts from foreign countries, including neighbouring Mexico and Canada.

General Motors said its new investment will add assembly of the gas-powered Chevrolet Blazer and Chevrolet Equinox that are currently produced in Mexico to two existing plants in the U.S.

The automaker is also planning to convert a large, idled plant in Michigan to make gas-powered SUVs and trucks starting in 2027.

GM has not said what the future will be for its assembly plant that currently produces the vehicles in Mexico.

The new investment, which will be allocated through 2027, will give General Motors the ability to assemble more than two million vehicles per year in the U.S., according to the company.

GM said its Fairfax Assembly in Kansas will add production of the gas-powered Chevrolet Equinox beginning in mid-2027.

The gas-powered Chevrolet Blazer will be added to GM’s Spring Hill Assembly plant in Tennessee starting in 2027.

The Detroit automaker has set its 2025 capital spending at between $10 billion U.S. and $11 billion U.S.

General Motors says it has been analyzing its North American production for months amid the Trump administration’s import tariffs.

The stock of General Motors has declined 5% this year to trade at $48.93 U.S. per share.