General Motors plans to invest $4 billion over the next two years in its U.S. factories to ramp up production of gas-powered and electric vehicles. The move will allow the automaker to build more than two million vehicles per year in the U.S., up from about 1.7 million.
The investment follows GM’s earlier $888 million commitment to its Tonawanda Propulsion Plant near Buffalo, New York, which will support the company’s next-generation V-8 engine. The latest funding will support new or expanded vehicle production in Michigan, Kansas, and Tennessee.
GM will build full-size gas-powered SUVs and light-duty pickups at the Orion Assembly plant in Michigan in early 2027. As a result, EV production—including the Chevrolet Silverado EV and GMC Sierra EV—will move to GM’s Factory ZERO plant in Detroit-Hamtramck.
Fairfax Assembly in Kansas City will start making the gas-powered Chevrolet Equinox in mid-2027. GM said Equinox sales jumped more than 30% in the first quarter of 2025. That plant is also on track to begin production of the 2027 Chevrolet Bolt EV by the end of the year.
Spring Hill Manufacturing in Tennessee will start producing the gas-powered Chevrolet Blazer in 2027. The plant will also continue to build the Cadillac LYRIQ, VISTIQ, and XT5.
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“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said GM Chair and CEO Mary Barra. “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs.”
The decision also comes as the auto industry faces new tariffs. In April, President Trump imposed a 25% tariff on imported vehicles and followed it up with tariffs on many auto parts in May. GM CFO Paul Jacobson acknowledged the impact, noting that “there’s a real opportunity to rebalance some of our manufacturing.”
Jacobson said the switch will help relieve pressure on GM’s Arlington, Texas plant and better utilize the Orion facility.
The company expects its annual capital spending to range from $10 billion to $12 billion through 2027, with no changes to its 2025 forecast.
“GM’s decision to invest billions in American plants and prioritize U.S. workers is exactly why we spoke up in favor of these auto tariffs,” added UAW President Shawn Fain.
