Latest news with #OrionAssembly
Yahoo
5 hours ago
- Automotive
- Yahoo
GM weighs tariffs, EV demand, factory flexibility as it moves some production to U.S.
For years, General Motors had turned to Mexico to reduce assembly costs for many lower-priced vehicles. Now it's spending $4 billion to move some of that production to the U.S. starting in 2027, as President Donald Trump's tariffs and evolving consumer demand changed the calculus. GM's plan to build more gasoline-powered crossovers, pickups and SUVs at three U.S. plants gives the automaker more manufacturing flexibility for American consumers, who haven't switched to electric vehicles as fast as once anticipated. General Motors is spending $4 billion at three U.S. assembly plants as it moves some vehicle production from Mexico and increases output of some gasoline-powered models in response to customer demand. Investment Chevrolet Blazer Chevrolet Equinox Chevrolet Silverado/GMC Sierra Chevrolet Silverado Source: General Motors And it helps fill underused U.S. assembly plants, a key priority for the UAW, which has supported Trump's tariffs as a tool to encourage domestic auto manufacturing. 'It respects the tariff issue, but it is not driven entirely by the tariff issue,' said Stephanie Brinley, associate director of AutoIntelligence for S&P Global Mobility. The fact that GM won't start building the vehicles in the U.S. for two years underscores the industry's message to the White House that production changes can't happen quickly, Brinley said. And with a longer runway for gasoline engines as EV demand builds gradually, GM will need to invest to keep its internal combustion lineup fresh. After already spending billions of dollars to prepare an assembly plant in suburban Detroit for electric pickup production, GM now plans to build gasoline-powered trucks there instead. Orion Assembly will be a relief valve for other high-volume factories, including GM's SUV plant in Arlington, Texas, that are running near capacity. 'Automakers are thinking about more than one thing when they make sourcing decisions that are expected to last for a few life cycles,' Brinley said. GM's new $4 billion investment will be shared among Orion Assembly, Fairfax Assembly in Kansas and Spring Hill Manufacturing in Tennessee. The automaker did not specify how much each plant would get, but sources told Automotive News affiliate Crain's Detroit Business that roughly half the amount is earmarked for Orion. Sign up to get our afternoon video email. The video focuses on a new topic in the news each day. 'We believe the future of transportation will be driven by American innovation and manufacturing expertise,' GM CEO Mary Barra said in a June 10 statement. 'Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs.' GM will expand production of light-duty full-size gasoline pickups and SUVs to Orion Assembly, which has been down for retooling since the first-generation Chevrolet Bolt ended in late 2023. GM had delayed its timeline for the plant to reopen multiple times as EV demand stagnated. 'We had planned for that to be a big EV plant as we were thinking about rapid expansion of electric vehicles, and clearly we haven't seen that happen,' GM CFO Paul Jacobson said June 11 at a Deutsche Bank automotive investor conference. 'This is a great example of how we can pivot, how we can adjust, how we can be resilient in the face of an environment that's changing around us,' he said. The Kansas plant will make the gasoline Chevy Equinox compact crossover, while Spring Hill will become the new home of the midsize Chevy Blazer now made in Ramos Arizpe, Mexico. A company source told Automotive News that production of the gasoline-powered Blazer will end in Mexico, while Equinox production will continue there for other markets. The UAW celebrated GM's investment as 'a turning point' in its advocacy to bring auto jobs back to the U.S. from Mexico and other lower-cost countries. 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 > 'The writing is on the wall: the race to the bottom is over,' UAW President Shawn Fain said in a statement. 'We have excess manufacturing capacity at our existing plants, and auto companies can easily bring good union jobs back to the U.S. They can prove the naysayers wrong by investing in our communities and putting workers before corporate greed. GM is showing that it can be done.' GM's U.S. factory investment comes as the auto industry navigates the vehicle import tariffs Trump enacted in April. GM has said the tariffs will add $4 billion to $5 billion in costs this year and lowered the company's full-year earnings guidance as a result. In recent weeks, GM has said it will increase U.S. production of full-size pickups that also are built in Canada and Mexico. The automaker likewise will cut production of the trucks in Oshawa, Ontario. With the latest investment, GM said it will have capacity to build more than 2 million vehicles annually in the U.S. The $4 billion is in addition to $888 million it's spending to build more V-8 engines at a plant in New York. Fairfax Assembly is currently offline for retooling to build the next-generation Bolt EV starting later this year, but that had been the factory's only assigned product after GM discontinued the Chevrolet Malibu sedan and Cadillac XT4 compact crossover. GM said the plant also is slated to build future low-priced EVs. The automaker already uses a similar approach at Spring Hill and will assemble the Blazer alongside both gasoline and electric Cadillac crossovers. 'The idea that the Blazer and the Equinox EVs were going to replace volume of the gas-powered versions is a bit premature, and they're rectifying that situation by building more of them,' said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. 'Having flexible plants will help all automakers over the next decade or so. This is going to be a drawn-out transition, and many of the manufacturers did not plan for that.' Jacobson said investing in existing U.S. plants with excess capacity is a more efficient use of capital than building new factories. 'That optionality is really important and critical for us as we move forward, being able to respond to where EV demand is going to be,' he said. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Auto Blog
14 hours ago
- Automotive
- Auto Blog
GM Announced a Landmark U.S. Manufacturing Investment
GMC Hummer electric vehicles on the production line at General Motors' Factory ZERO all-electric vehicle assembly plant in Detroit, Michigan, U.S., on Wednesday, Nov. 17, 2021. More domestic manufacturing? GM says yes In an announcement late on June 10, one of the most prominent Detroit-based automakers, General Motors, announced its landmark investment plans that would catalyze auto manufacturing in the United States. The automaker announced plans to invest about $4 billion over the next two years to support its U.S. manufacturing plants and their efforts to produce gas and electric vehicles. The automaker did not specify how much money each plant would receive, but it said that the $4 billion in question would help adapt the Orion Assembly in Michigan, Fairfax Assembly in Kansas, and Spring Hill Manufacturing in Tennessee for future vehicles in its pipeline. Previous Pause Next Unmute 0:09 / 0:09 Walmart is selling a 'heavy duty' $89 step ladder for $48, and shoppers say it's 'sturdy and secure' Watch More Piego Connally, assembly team leader at the Fairfax Assembly plant in Kansas City, Kansas. — Source: General Motors These factories are set to produce new products General Motors plans to retool its Orion Assembly plant to produce gasoline-powered full-size SUVs and light-duty pickups starting in early 2027 in response to strong demand for these vehicles. Originally, Orion was set to be reconfigured for electric vehicle production, but GM has announced that its Factory Zero electric vehicle plant in Detroit will be the dedicated facility for manufacturing the Chevrolet Silverado EV, GMC Sierra EV, Hummer EV, and Cadillac Escalade IQ. GM's Fairfax plant will continue to be retooled to produce the next generation of the Chevrolet Bolt EV, with production expected to begin by the end of the year. However, the automaker announced that Fairfax will share production duties with the internal combustion version of the Chevy Equinox in mid-2027 and also focus on building the next generation of affordable EVs. Furthermore, GM also stated that some of its funding will be allocated to the Spring Hill plant, where it plans to manufacture the gasoline-powered Chevrolet Blazer in 2027, alongside Cadillac's gas-powered XT5 crossover and the Cadillac Lyriq and Vistiq EVs. A Chevrolet Silverado pick-up truck at a dealership in Colma, California, US, on Friday, Jan. 26, 2024. — Source: Getty Images GM's tariff response General Motors's multi-billion-dollar investment in U.S. factories comes at a time when President Donald Trump's tariffs on vehicle imports are putting direct pressure on the auto industry. Previously, GM indicated that these tariffs would cost the company between $4 billion and $5 billion this year, prompting executives to revise GM's full-year earnings guidance. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. According to GM sources who spoke with Automotive News and CNBC, production of the gas-powered Equinox will move to the Fairfax plant to supplement the current output in San Luis Potosi, Mexico. This change means that the Equinox manufactured in Mexico will be designated for overseas markets. Production of the Blazer will also shift from Ramos Arizpe, Mexico, where it is currently produced alongside the Chevy Blazer EV and the Ultium-powered Honda Prologue. GM said in its statement that this investment will help it reach the capacity to build more than 2 million cars per year in the U.S. 2025 Chevy Equinox '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.' The investment announcement has been viewed as a win by prominent labor leaders, who see it as a direct reinvestment in a unionized labor force. In a statement, UAW President Shawn Fain, who previously aired direct support of Trump's tariffs, hailed the levies as a step forward for American labor. 'GM's decision to invest billions in American plants and prioritize U.S. workers is exactly why we spoke up in favor of these auto tariffs,' Fain said in a June 11 statement. 'The writing is on the wall: the race to the bottom is over. We have excess manufacturing capacity at our existing plants, and auto companies can easily bring good union jobs back to the U.S.' Final thoughts In remarks during a Deutsche Bank automotive investor conference on June 11, GM CFO Paul Jacobson confirmed that the automaker's multi-billion-dollar decision was made in response to Trump's tariffs, adding that though it's a lot of money, it can invest in what's next for the auto industry. 'A lot of the fear from talking to investors was that the policies that are being enacted by the administration were going to create a significant run on capital,' Jacobson said. 'Four billion dollars is a lot of money, but I think we've been able to thread that in ways that are capitalizing on the next generation of vehicles coming in, to do it efficiently, not building walls that we don't need to build where we can fill plants up, and also keep our capital forecast in line and consistent with where we've seen it.' At the same time, the company is relying on its flexibility. He pointed out that the improvements at the facilities at Fairfax and Spring Hill will be designed to adjust output based on customer demand for either gasoline or electric vehicles. 'That optionality is really important and critical for us as we move forward, being able to respond to where EV demand is going to be,' Jacobson said. About the Author James Ochoa View Profile
Miami Herald
15 hours ago
- Automotive
- Miami Herald
GM Announced a Landmark U.S. Manufacturing Investment
In an announcement late on June 10, one of the most prominent Detroit-based automakers, General Motors, announced its landmark investment plans that would catalyze auto manufacturing in the United States. The automaker announced plans to invest about $4 billion over the next two years to support its U.S. manufacturing plants and their efforts to produce gas and electric vehicles. The automaker did not specify how much money each plant would receive, but it said that the $4 billion in question would help adapt the Orion Assembly in Michigan, Fairfax Assembly in Kansas, and Spring Hill Manufacturing in Tennessee for future vehicles in its pipeline. General Motors plans to retool its Orion Assembly plant to produce gasoline-powered full-size SUVs and light-duty pickups starting in early 2027 in response to strong demand for these vehicles. Originally, Orion was set to be reconfigured for electric vehicle production, but GM has announced that its Factory Zero electric vehicle plant in Detroit will be the dedicated facility for manufacturing the Chevrolet Silverado EV, GMC Sierra EV, Hummer EV, and Cadillac Escalade IQ. GM's Fairfax plant will continue to be retooled to produce the next generation of the Chevrolet Bolt EV, with production expected to begin by the end of the year. However, the automaker announced that Fairfax will share production duties with the internal combustion version of the Chevy Equinox in mid-2027 and also focus on building the next generation of affordable EVs. Furthermore, GM also stated that some of its funding will be allocated to the Spring Hill plant, where it plans to manufacture the gasoline-powered Chevrolet Blazer in 2027, alongside Cadillac's gas-powered XT5 crossover and the Cadillac Lyriq and Vistiq EVs. General Motors's multi-billion-dollar investment in U.S. factories comes at a time when President Donald Trump's tariffs on vehicle imports are putting direct pressure on the auto industry. Previously, GM indicated that these tariffs would cost the company between $4 billion and $5 billion this year, prompting executives to revise GM's full-year earnings guidance. According to GM sources who spoke with Automotive News and CNBC, production of the gas-powered Equinox will move to the Fairfax plant to supplement the current output in San Luis Potosi, Mexico. This change means that the Equinox manufactured in Mexico will be designated for overseas markets. Production of the Blazer will also shift from Ramos Arizpe, Mexico, where it is currently produced alongside the Chevy Blazer EV and the Ultium-powered Honda Prologue. GM said in its statement that this investment will help it reach the capacity to build more than 2 million cars per year in the U.S. "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." The investment announcement has been viewed as a win by prominent labor leaders, who see it as a direct reinvestment in a unionized labor force. In a statement, UAW President Shawn Fain, who previously aired direct support of Trump's tariffs, hailed the levies as a step forward for American labor. "GM's decision to invest billions in American plants and prioritize U.S. workers is exactly why we spoke up in favor of these auto tariffs," Fain said in a June 11 statement. "The writing is on the wall: the race to the bottom is over. We have excess manufacturing capacity at our existing plants, and auto companies can easily bring good union jobs back to the U.S." In remarks during a Deutsche Bank automotive investor conference on June 11, GM CFO Paul Jacobson confirmed that the automaker's multi-billion-dollar decision was made in response to Trump's tariffs, adding that though it's a lot of money, it can invest in what's next for the auto industry. "A lot of the fear from talking to investors was that the policies that are being enacted by the administration were going to create a significant run on capital," Jacobson said. "Four billion dollars is a lot of money, but I think we've been able to thread that in ways that are capitalizing on the next generation of vehicles coming in, to do it efficiently, not building walls that we don't need to build where we can fill plants up, and also keep our capital forecast in line and consistent with where we've seen it." At the same time, the company is relying on its flexibility. He pointed out that the improvements at the facilities at Fairfax and Spring Hill will be designed to adjust output based on customer demand for either gasoline or electric vehicles. "That optionality is really important and critical for us as we move forward, being able to respond to where EV demand is going to be," Jacobson said. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
2 days ago
- Automotive
- Yahoo
GM to invest $4B into U.S. manufacturing, including KCK's Fairfax plant
KANSAS CITY, Mo. — General Motors announced on Tuesday that it plans to invest about $4 billion over the next two years into manufacturing throughout the United States, including the Fairfax plant in Kansas City, Kansas. According to , the new investment will give the company the opportunity to create more than 2 million new vehicles per year across the U.S. KC2026 to provide update on FIFA World Cup tournament plans Three plants across Michigan, Kansas and Tennessee will expand vehicle production of some of the company's most popular models: Orion Assembly, Orion Township, Michigan Gas-powered full-size SUVs and light-duty pickup trucks Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV pickup and SUV Fairfax Assembly, Kansas City, Kansas Gas-powered Chevrolet Equinox and 2027 Chevrolet Bolt EVs. 'GM expects to make new future investments in Fairfax for GM's next generation of affordable EVs,' the company said. Spring Hill Manufacturing, Spring Hill, Tennessee Gas-powered Chevrolet Blazer, Cadillac LYRIQ and VISTIQ EVs, and the Cadillac XT5 The latest manufacturing plan comes after the company announced an $888 million investment proposal in the Tonawanda Propulsion plant near Buffalo, New York. The investment aims to help GM develop and evolve the V-8 engine. 'We believe the future of transportation will be driven by American innovation and manufacturing expertise,' said GM Chair and CEO Mary Barra. '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.' According to the company, about one million people — customers, employees and suppliers — across the nation depend on GM's 50 U.S. manufacturing plants and parts facilities across 19 states, as well as its 11 assembly plants, to sustain their livelihoods. At this time, the company said it is on track to deliver its sixth consecutive year as the full-size pickup sales leader, and its 51st straight year leading in full-size SUVs. Additionally, in the second half of 2024, GM became the second-highest seller of electric vehicles in the U.S. with the help of its 13 new EV models from Chevrolet, Cadillac, and GMC. Because of this success, Chevrolet has become the fastest-growing EV brand and is ranked second among all EV brands in sales. Hallmark Christmas Experience returns to Kansas City with star appearances '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,' said GM President Mark Reuss. '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.' The company said going forward, it expects its annual capital spending to be between $10 billion and $12 billion through 2027, reflecting GM's effort to invest back into U.S. manufacturing, as well as key programs. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
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. Sign up to get our afternoon video email. The video focuses on a new topic in the news each day. 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.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
