GM to invest $4 billion in 3 U.S. factories to build gasoline, electric vehicles
General Motors said it would invest close to $4 billion in three U.S. assembly plants over the next two years as it boosts production of internal combustion engine vehicles and plans for future low-priced electric vehicles.
The automaker did not break out the amount to be invested in each plant but said June 10 the dollars will go to Orion Assembly in Michigan, Fairfax Assembly in Kansas and Spring Hill Manufacturing in Tennessee.
'We believe the future of transportation will be driven by American innovation and manufacturing expertise,' GM CEO Mary Barra said in a statement. 'Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.'
Want to keep up with the latest product planning news? Go to Automotive News' regularly updated database of product plans for brands that sell in the United States. Future Product Pipeline >5-year product timelines by brand >
Orion Assembly, which has been down for retooling since late 2023, originally to build electric pickups, now will build gasoline-powered full-size SUVs and light-duty pickups starting in early 2027, the automaker said. Its Factory Zero electric vehicle plant in Detroit will continue to build EV pickups and SUVs, including the Chevrolet Silverado EV, the GMC Sierra EV and Hummer EV and the Cadillac Escalade IQ.
GM's Fairfax plant also is down for retooling to build the next generation of the Chevrolet Bolt EV and, starting in the middle of 2027, the internal combustion version of the Chevy Equinox. A GM spokesperson said Equinox production at Fairfax will be in addition to production in San Luis Potosi, Mexico, where it currently is built. The Bolt EV will be redesigned for 2027 and start production at Fairfax by the end of the year, GM said, and the Fairfax plant also will build next-generation affordable EVs.
Since last fall, GM has discontinued the Chevrolet Malibu sedan and the Cadillac XT4 compact crossover that had been built at Fairfax.
The gasoline-powered Chevrolet Blazer will be built at GM's Spring Hill plant in 2027, adding another internal combustion vehicle to a flexible plant that will build the gasoline-powered Cadillac XT5 midsize crossover and the Cadillac Lyriq and Vistiq EVs.
A company source told Automotive News that gasoline-powered Blazer production will move out of Ramos Arizpe, Mexico, where it is built alongside the Chevy Blazer EV, while production of the gasoline-powered Equinox in Mexico will be for other markets.
GM's U.S. factory investment comes as the auto industry works to navigate President Donald Trump's tariffs on vehicle imports. GM has said tariffs will cost the company $4 billion to $5 billion this year, and executives lowered GM's full-year earnings guidance.
Already, the company has said it will increase U.S. production of light-duty full-size pickups that also are built in Canada and Mexico at its Fort Wayne, Ind., assembly plant. The automaker also said it will cut production at its pickup plant in Oshawa, Ontario.
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With the latest investment, GM said it will have capacity to build more than 2 million vehicles annually in the U.S. The automaker recently said it plans an investment of $888 million at a propulsion plant in New York for future V-8 engines.
GM said future capital spending will range from $10 billion to $12 billion per year through 2027 as it invests in its U.S. factory footprint.
'Today's news goes well beyond the investment numbers — this is about hardworking Americans making vehicles they are proud to build and that customers are proud to own," GM President Mark Reuss said in a statement. 'As you travel the country, you can see firsthand the scale of our manufacturing footprint and the positive economic impact on our communities and our country.'
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