General Motors Shifts Production to U.S. with $4 Billion Investment

### General Motors Shifts Production to U.S. with $4 Billion Investment

General Motors (GM) announced in June 2025 a $4 billion investment over the next two years to expand three U.S. assembly plants, shifting production of key SUVs like the Chevrolet Equinox and Blazer from Mexico to avoid 25% tariffs and boost domestic capacity. The Equinox will move to Fairfax Assembly in Kansas City, Kansas, starting mid-2027, while the Blazer heads to Spring Hill Manufacturing in Tennessee from 2027, alongside EVs like the Cadillac LYRIQ. Additionally, Orion Assembly in Michigan will restart in early 2027 for gas-powered full-size SUVs and pickups, freeing up Factory ZERO for EV production.

This reshoring, driven by tariff pressures and a commitment to American jobs, will increase GM’s U.S. assembly capacity to over 2 million vehicles annually, reducing reliance on Mexican plants in Ramos Arizpe and San Luis Potosi. GM CEO Mary Barra emphasized the move supports innovation and manufacturing expertise in the U.S., with potential for future EV investments at Fairfax for next-gen affordable models. The strategy also includes balancing gas and electric vehicles to meet market demands amid shifting consumer preferences.

While specific new job numbers remain unspecified, the investment is expected to preserve and create roles across the supply chain, benefiting nearly one million U.S. workers tied to GM. Challenges include higher U.S. labor costs potentially raising vehicle prices, but analysts see it as a proactive step in navigating trade uncertainties. As of August 2025, implementation is on track, aligning with broader industry reshoring trends.