General Motors ( GM ) announced plans to invest$ 4 billion in three new U.S. assembly plants, including the production lines for Chevrolet Equinox and Blazer, which the company currently constructs in Mexico, in a significant boost to the Trump administration’s tariff strategy.
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This action comes in response to President Donald Trump’s earlier earlier this year implementation of 25 % tariffs on imported cars and car parts to stimulate more production in the US. In April and May, the auto parts levies went into effect for imported cars.
According to CNBC, GM stated back in February that it anticipated being able to offset between 30 % and 50 % of the tariffs without using any kind of capital.
The White House welcomed the investment, calling it a significant improvement for President Trump’s trade policies, while the United Auto Workers ( UAW ) praised GM’s decision and called it evidence of how effective global auto tariffs are.
Trade talks between the White House and its Mexican peers have not fared in the present.
The manufacturer with a U.S. presence stated in a press release on June 10 that the new home plants may increase production of some electric vehicles over the next two years.
” We think that American technology and manufacturing expertise will be the driver of vehicles in the future,” said Mary Barra, GM’s seat and CEO.  ,
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” Today’s news demonstrates our ongoing commitment to build cars in the U.S. to help American work. We’re focused on offering a wide range of vehicles to consumers who want to buy something,” she continued.
When all creation is complete, plans to build three crops in Michigan, Kansas, and Ohio are in progress, and they are anticipated to increase between 3, 000 and 4, 000 U.S. work. Starting in the first half of 2027, the mostly abandoned Orion Assembly Plant in Orion, Michigan, which was formerly used to create all-electric cars like the Chevrolet Bolt, will start producing gas-powered full-size SUVs and light-duty delivery vehicles.
By the end of 2025, the Fairfax Assembly Plant in Kansas City, Kan., will begin producing the gas-powered Chevrolet Equinox and the 2027 Chevrolet Bolt EV, while the Spring Hill Manufacturing Plant in Spring Hill, Tennessee, may produce the gas-powered Chevrolet Blazer, Cadillac Lyriq, and Vistiq EVs, as well as the Cadillac XT5.
GM claims that the expense in these three species will enable it to import more than two million vehicles internally each time. Since the announcement of the tax plan was made, GM has been reviewing its production footprints in North America. It may stop spending any more money on electric cars after placing a lot of attention on those models over the past few years.
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Before making any decisions, business executives said they would “wait and see” until they had more information about the regulatory culture, including the auto levies.
In May, GM’s CFO Paul Jacobson stated to investors that the tariffs were likely less dangerous than the markets had predicted, and that the company’s ability to reduce some of the costs associated with the tariffs and potential new trade agreements with other nations were encouraging.
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