04-04-2025
Tariff Movement: GM And Volvo Announce Increased Production At US Factories
Read the full story on The Auto Wire
Reciprocal tariffs put in place by the United States against a long list of other countries are here and already GM as well as Volvo have announced plans to increase manufacturing inside this nation. While obviously factories take time to set up, it's obvious automakers and other manufacturers are going to be protecting their share in the second-largest market in the world which is arguably the most up, GM just announced today it's making 'operational adjustments' at Fort Wayne Assembly, increasing overtime and taking on extra temporary assembly line workers, reports Fox News. The goal is to increase production of light-duty trucks manufactured there, both the Chevy Silverado 1500 and GMC Sierra 1500.
GM has a plant in Silao, Mexico which also assembles Silverados and Sierras. This might mean production there will be dialed down to avoid tariffs.
Volvo is not only looking to increase production volume at its US factories but also add an additional model to the mix. That's what the automaker's CEO Hakan Samuelsson told Bloomberg in an interview. Volvo is owned by China's Geely but reportedly operates with a level of autonomy.
It's not clear which model would be added, as Samuelsson indicated the company would need to weigh options.
As for Mercedes, the automaker is apparently considering if it should shift more vehicle production to the US. That's how Jorg Burzer, head of production, made it sound while speaking with Bloomberg. He emphasized the German automaker has 'made some plans' but is emphasizing 'flexibility' – whatever that means.
Meanwhile, Ford has announced it's offering employee pricing to US customers 'for the next few months.' Obviously, this move is to help calm panic about vehicle prices skyrocketing suddenly after many media outlets have stoked incredible levels of fear.
Stellantis says it's idling Windsor Assembly Plant in Canada, which assembles the Dodge Charger Daytona and Chrysler Pacifica, plus Toluca Assembly in Mexico, which assembles the Jeep Compass and Wagoneer S, next week, reports Detroit Free Press.
Come midnight tonight, a 25 percent tariff will be imposed on any foreign-made cars imported into the US. That might seem harsh, but American-made cars have endured similar tariffs from some nations for decades. That's not exactly the free trade some have pretended it was.
Image via Volvo
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