GM to invest $4 billion to ramp up US production
Shares of General Motors rose before the opening bell after announcing plans to invest $4 billion to shift some production from Mexico to U.S. manufacturing plants as the automaker navigates tariffs that could drive prices higher.
President Trump signed executive orders in April, relaxing some of his 25% tariffs on automobiles and auto parts, a significant reversal as the import taxes threatened to hurt domestic manufacturers.
Automakers and independent analyses say the tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide. Trump portrayed the changes as a bridge toward automakers moving more production into the United States.
GM said late Tuesday that the investment will be made over the next two years and is for its gas and electric vehicles. The company will add production of the gas-powered Chevrolet Blazer and Chevrolet Equinox, which are made in Mexico, to two American plants starting in 2027. The Blazer will be produced at GM's Spring Hill, Tennessee plant, while the Equinox will be made at its Kansas City, Kansas facility.
GM will also begin making gas-powered full-size SUVs and light duty pickup trucks at its Orion Township, Michigan plant, which was previously being reconfigured to make electric vehicles until demand for such cars weakened.
The new investment will give GM the ability to assemble more than 2 million vehicles per year in the U.S.
CEO Mary Barra said in a statement on Tuesday that GM is committed to building vehicles in the U.S. and supporting American jobs.
GM has 50 U.S. manufacturing plants and parts facilities in 19 states, including 11 vehicle assembly plants. The company says that almost 1 million people in the U.S. depend on it for their livelihood, including employees, suppliers, and dealers.
Monday Mornings
The latest local business news and a lookahead to the coming week.
Last month GM lowered its profit expectations for the year as it braces for a potential impact from auto tariffs as high as $5 billion in 2025. The automaker now foresees full-year adjusted earnings before interest and taxes in a range of $10 billion to $12.5 billion. The guidance includes a current tariff exposure of $4 billion to $5 billion. GM previously predicted 2025 adjusted EBIT between $13.7 billion and $15.7 billion.
Shares of General Motors Co. rose almost 1% before the opening bell Wednesday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Vancouver Sun
an hour ago
- Vancouver Sun
Trump says he offered assistance to India after crash: 'I gave them a couple of pointers'
US President Donald Trump expressed his condolences after the deadly crash of a Boeing Co. 787 Dreamliner operated by Air India that left hundreds dead, saying he had offered 'pointers' on possible causes as well as an offer of assistance to Indian authorities. 'I gave them a couple of pointers. I said, 'Maybe you look at this,' you know, we saw the plane, it looked like it was flying pretty well, it didn't look like there was an explosion, just looked like the engines maybe lost power,' Trump said at an event Thursday at the White House. Trump said he had offered India help in the recovery and went on to call the crash 'terrible' and 'one of the worst in aviation history.' Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'It's a big country, a strong country, and they'll handle it, I'm sure, but I let them know that anything we can do will be over there immediately,' Trump said. The flight, which crashed shortly after takeoff from Ahmedabad in India en route to London Gatwick, was carrying 242 passengers and crew, most of whom were Indian and UK nationals. More than 200 bodies have been recovered as local investigators scour the crash site. The Federal Aviation Administration said on Thursday that it was in contact with the National Transportation Safety Board. The NTSB will be leading a team of US investigators traveling to India to assist with the probe, according to a post on X. US air safety officials typically assist investigations to determine the cause of crashes involving American-built aircraft, a process that can take weeks and months. The incident marked the first-ever complete loss of a Boeing 787 Dreamliner and extends a series of serious and fatal incidents in the civil aviation industry this year. Boeing said it's 'aware of initial reports and are working to gather more information.' Its stock fell some 6% in early US trading on Thursday. The company has been involved in several accidents in recent years, including two fatal crashes in 2018 and 2019. Early last year, a nearly-new 737 Max aircraft lost a door panel during flight. While there were no fatalities, the accident plunged the company into a crisis. In the US, air safety has also come under fresh scrutiny. In January, an American Airlines regional jet collided with a military helicopter near Washington, killing the 60 passengers and 4 crew members. The FAA is also working to bolster the airspace around Newark Liberty International Airport after recent radar and radio outages caused major disruptions. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Ex-congressman Billy Long confirmed as commissioner of the IRS, an agency he once sought to abolish
WASHINGTON (AP) — Former U.S. Rep. Billy Long of Missouri was confirmed on Thursday to lead the Internal Revenue Service, giving the beleaguered agency he once sought to abolish a permanent commissioner after months of acting leaders and massive staffing cuts that have threatened to derail next year's tax filing season. The Senate confirmed Long on a 53-44 vote despite Democrats' concerns about the Republican's past work for a firm that pitched a fraud-ridden coronavirus pandemic-era tax break and about campaign contributions he received after President Donald Trump nominated him to serve as IRS commissioner. While in Congress, where he served from 2011 to 2023, Long sponsored legislation to get rid of the IRS, the agency he is now tasked with leading. A former auctioneer, Long has no background in tax administration. Long will take over an IRS undergoing massive change, including layoffs and voluntary retirements of tens of thousands of workers and accusations that then-Trump adviser Elon Musk's Department of Government Efficiency mishandled sensitive taxpayer data. Unions and advocacy organizations have sued to block DOGE's access to the information. The IRS was one of the highest-profile agencies still without a Senate-confirmed leader. Before Long's confirmation, the IRS shuffled through four acting leaders, including one who resigned over a deal between the IRS and the Department of Homeland Security to share immigrants' tax data with Immigration and Customs Enforcement and another whose appointment led to a fight between Musk and Treasury Secretary Scott Bessent. After leaving Congress to mount an unsuccessful bid for the U.S. Senate, Long worked with a firm that distributed the pandemic-era employee retention tax credit. That tax credit program was eventually shut down after then-IRS Commissioner Daniel Werfel determined that it was fraudulent. Democrats called for a criminal investigation into Long's connections to other alleged tax credit loopholes. The lawmakers allege that firms connected to Long duped investors into spending millions of dollars to purchase fake tax credits. Long appeared before the Senate Finance Committee last month and denied any wrongdoing related to his involvement in the tax credit scheme. Ahead of the confirmation vote, Democratic Sen. Ron Wyden of Oregon, the ranking member of the Senate Finance Committee, sent a letter to White House chief of staff Susie Wiles blasting the requisite FBI background check conducted on Long as a political appointee as inadequate. 'These issues were not adequately investigated,' Wyden wrote. 'In fact, the FBI's investigation, a process dictated by the White House, seemed designed to avoid substantively addressing any of these concerning public reports. It's almost as if the FBI is unable to read the newspaper.' Democratic lawmakers have also written to Long and his associated firms detailing concerns with what they call unusually timed contributions made to Long's defunct 2022 Senate campaign committee shortly after Trump nominated him. The IRS faces an uncertain future under Long. Tax experts have voiced concerns that the 2026 filing season could be hampered by the departure of so many tax collection workers. In April, The Associated Press reported that the IRS planned to cut as many as 20,000 staffers — up to 25% of the workforce. An IRS representative on Thursday confirmed the IRS had shed about that many workers but said the cuts amounted to approximately the same number of IRS jobs added under the Biden administration. Monday Mornings The latest local business news and a lookahead to the coming week. The fate of the Direct File program, the free electronic tax return filing system developed during President Joe Biden's Democratic administration, is also unclear. Republican lawmakers and commercial tax preparation companies had complained it was a waste of taxpayer money because free filing programs already exist, although they are hard to use. Long said during his confirmation hearing that it would be one of the first programs that come up for discussion if he were confirmed. Long is not the only Trump appointee to support dismantling an agency he was assigned to manage. Linda McMahon, the current education secretary, has repeatedly said she is trying to put herself out of a job by closing the federal department and transferring its work to the states. Rick Perry, Trump's energy secretary during his first term, called for abolishing the Energy Department during his bid for the 2012 GOP presidential nomination. ___ Follow the AP's coverage of the Internal Revenue Service at
Globe and Mail
2 hours ago
- Globe and Mail
Jobless Claims Remain Same WoW
Pre-market futures are lower this morning, on what is likely a combination of effects: Weekly Jobless Claims numbers that are pushing up through previous ranges, wholesale economic reads that were better than expected but still elevated, and a dearth of news on the pending trade agreement between the U.S. and China that President Trump announced Wednesday morning. In fairness, these futures were down ahead of these reports hitting the tape. Partly, especially on the blue-chip Dow, due to a tragic plane crash in the city of Ahmedabad in the western region of Gujarat in India. The jet was a Dreamliner 787-8, and while details on why the crash happened — to say nothing of the 242 people aboard the plane, and those in the apartment buildings where the plane crashed — have yet to be determined, Boeing BA shares are down -7% on this news. This all said, the Dow is -225 points at this moment in today's pre-market, the S&P 500 is -25 and the Nasdaq is -85 points. The small-cap Russell 2000 is down -15 points at this hour. We were at weekly and monthly highs just yesterday morning, but it looks as if we may need to earn that level again from here. Weekly Jobless Claims Keep Warming Up Thursday morning almost always brings Weekly Jobless Claims, and today is no exception. Initial Jobless Claims came in at +248K, equalling the previous week's upwardly revised tally and higher than expectations by about 2K or so. The trailing 4-week average in new claims is now +240K; the 4-week average directly prior was +231K. Continuing Claims notched its third-straight week above the 1.9 million threshold: 1.956 million, to be exact — above the 1.902 million the prior week and the highest single week on longer-term claims since mid-November of 2021. Over the past couple months, 1.9 million reports would be revised downward by the next week, displaying an ebb-and-flow on longer-term jobless claims. Now we're inching closer to 2 million per week, which will change the narrative on the jobs market once it arrives. PPI Wholesale Prices Cool Near-Term The May Producer Price Index (PPI) is the wholesale side of prices, out a day following the Consumer Price Index (CPI), which represents the retail side. Headline PPI month over month came in at +0.1%, down from the +0.2% expected and swinging to a positive from the upwardly revised -0.2% for April. Stripping out food and energy prices, core PPI month over month also reached +0.1%, 20 basis points (bps) lower than expected and up from -0.2% the previous month. Year over year, PPI headline reached +2.6% for May, 10 bps higher than the upwardly revised +2.5% for April. This is notching the wrong direction again, but still well off the 3%+ prints on headline PPI from late '24/early '25. Core PPI year over year reached +3.0%, down 20 bps month over month and off the 12-month high in March of +3.9%. Much as the CPI data showed us yesterday, inflation — while range-bound somewhere north of optimum rates from the Fed's perspective — is no longer out of control. The tariff issue is still unresolved, ultimately — the expiration of reciprocals is now T-27 days (barring a future change in tariff policy from the White House) — but kept at current levels, we can see the economy grinding along. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. The Boeing Company (BA): Free Stock Analysis Report
