General Motors Expands Production Capacity in the US

General Motors (GM) will invest $4 billion over the next two years in some of its manufacturing plants located in the United States to increase production of both gasoline-powered cars and electric vehicles.

Part of this capacity will be used to assemble at least three models that the Detroit-based automaker currently manufactures at its plants in Ramos Arizpe, Silao, and San Luis Potosí, although it is not yet known to what extent these operations will be affected.

The company said that once these investments, intended for operations in Michigan, Missouri, and Tennessee, are consolidated, its production capacity in the neighboring country will exceed two million units per year.

According to the announcement, the Orion Township, Michigan, plant, which was in the process of being reconfigured to produce electric vehicles, will now be used to assemble full-size gasoline-powered pickups and SUVs.

With this change, production of the zero-emission versions of the Chevy Silverado, GMC Sierra, and Cadillac Escalade trucks, as well as the Hummer EV pickup and SUV versions, will be concentrated at the Factory Zero plant, located on the outskirts of Detroit.

In the case of the Fairfax Assembly plant, located in Kansas City, this site will begin manufacturing gasoline-powered Equinox SUVs in mid-2027. This is without abandoning the plan to begin assembly operations for the new generation of the Chevrolet Bolt EV later this year.

GM added that the investment in Fairfax will also enable it to produce its “next generation of affordable electric vehicles,” without providing further details.

Finally, the manufacturing plant located in Spring Hill, Tennessee, will begin producing gasoline-powered Chevy Blazer SUVs in 2027, while continuing to assemble the Cadillac XT5, also with an internal combustion engine, as well as the Lyriq and Vistiq electric vehicles, also from the Cadillac brand, as it has done until now.

Paul Jacobson, GM's chief financial officer, said the new investment plan was devised in response to President Donald J. Trump's tariff and environmental policies, which have led to increased demand for gasoline-powered vehicles and a decline in demand for zero-emission models.

This announcement comes a couple of weeks after GM released another plan to allocate $888 million to a plant near Buffalo, New York, for the production of a new-generation V8 engine.

In the first five months of this year, the US automaker has produced 362,497 units at its three assembly plants in the country. This figure exceeds the result for the same period in 2024 by just 1,300 vehicles, or 0.36%.