General Motors will move production of two SUVs from Mexico to the US
Starting in 2027, General Motors (GM) will manufacture two gasoline-powered SUVs in the United States that are currently assembled in Mexico and exported to the US market: the Chevrolet Blazer and Equinox. This is part of the Detroit giant's commitment to invest US$4 billion in that country to increase local production, but also to continue with its electric expansion plan in Mexico.
General Motors produces the two gasoline-powered Chevrolet Equinox and Blazer SUVs in Mexico, one at the San Luis Potosí plant and the other at Ramos Arizpe, respectively. However, last year, assembly of both fully electric crossovers began at the Ramos Arizpe plant in Coahuila for export to the United States, Latin America, and the Middle East.
GM's strategy is to transform the Ramos Arizpe plant in Coahuila, Mexico, into an electric vehicle manufacturer, for which it invested more than US$4$1 billion during 2024.
General Motors' strategy is to end production of the combustion-powered Chevrolet Blazer to transform the Mexican plant in Ramos Arizpe into an exclusive electric car manufacturing site, where the Equinox EV (fully electric), Blazer EV, Cadillac Optiq, and Honda Prologue are also assembled.
The US automaker clarified that the investment in the United States over the next two years to expand domestic manufacturing at three of its US plants, for both gasoline and electric vehicles, is not a transfer of production but rather plans to strengthen the North American region.
General Motors in the United States explained that the expansion of gasoline-powered Blazer and Equinox production is in response to a 30% increase in demand in the US market, which requires additional capacity.
"Our plants in Mexico will continue with their production schedule until that time and will remain part of our global manufacturing footprint in the future. We continue to evaluate future investment options across our global manufacturing footprint," said Mexico's largest car manufacturer and exporter.
The US$4 billion investment will enable GM to manufacture up to 2 million vehicles per year and is in addition to another recently announced investment of US$888 million in a plant in New York to support GM with the new generation of V-8 engines.
