GM Announces $4 Billion Investment to Boost US Manufacturing and EV Production

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Image Courtesy: GM

General Motors has revealed a $4 billion investment in its US manufacturing operations, aimed at increasing domestic production of both gasoline and electric vehicles over the next two years. This move will allow GM to assemble over two million vehicles annually in the US. The announcement comes shortly after the company committed $888 million to enhance its Tonawanda Propulsion plant in Buffalo, New York, for the development of GM’s next-generation V-8 engine.

General Motors is set to enhance its US production capabilities by expanding key manufacturing plants in Michigan, Kansas, and Tennessee. These plants will play a pivotal role in increasing the output of some of GM’s most popular vehicles. This move is aimed at meeting the growing demand for both gasoline-powered and electric vehicles in the US market. Each facility will focus on different vehicle types, ensuring that GM can continue to deliver a diverse lineup to its customers.

In Orion Township, Michigan, the Orion Assembly plant will begin producing gasoline-powered full-size SUVs and light-duty pickup trucks by early 2027. This facility’s new production line is designed to support the increasing demand for these vehicles. Meanwhile, GM’s Factory ZERO in Detroit-Hamtramck, Michigan, will become the exclusive site for assembling the all-electric models, including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EV. This strategic division of labor ensures that GM can efficiently manage the production of both traditional and electric vehicles in the region.

Kansas City, Kansas, will also see an uptick in production with the Fairfax Assembly plant slated to begin manufacturing the gasoline Chevrolet Equinox in mid-2027. The Equinox has already experienced a 30% increase in sales year-over-year in early 2025, reflecting the vehicle’s growing popularity. In addition to the Equinox, Fairfax is set to start producing the 2027 Chevrolet Bolt EV later this year. GM has further plans to invest in this facility for the production of its next-generation, affordable electric vehicles, reinforcing its commitment to EV innovation.

Spring Hill, Tennessee, will be another focal point for GM’s production expansion. Starting in 2027, Spring Hill Manufacturing will add the production of the gasoline-powered Chevrolet Blazer to its existing lines. The facility will continue to produce the Cadillac Lyriq and Vistiq EVs, as well as the Cadillac XT5, which has been a key model for the brand. This expansion aims to meet the increasing demand for both gasoline and electric vehicles while supporting GM’s overall strategy for a more sustainable future.

These investments in US manufacturing plants underscore GM’s commitment to expanding its vehicle offerings while supporting American jobs. With an emphasis on both gasoline and electric vehicles, GM is positioning itself to lead the industry in innovation and production capacity. As the automotive landscape evolves, these plants will play a crucial role in GM’s strategy to meet the diverse needs of customers across the country.

“We believe the future of transportation will be shaped by American innovation and manufacturing,” said Mary Barra, GM’s Chair and CEO. “This investment highlights our continued dedication to US manufacturing and American jobs. Our goal is to give customers a wide variety of vehicles they can choose from and love.” GM operates 50 manufacturing plants across 19 US states, including 11 vehicle assembly facilities. The company supports nearly one million American jobs, including employees, suppliers, and dealers.

“Today’s announcement is more than just about numbers — it’s about hardworking Americans building vehicles they’re proud of, and that customers are proud to own,” said GM President Mark Reuss. “The scale of our manufacturing operations and their positive impact on communities across the country is something you can see firsthand.”

GM continues to see strong sales across both gasoline and electric vehicles in the US. The company is poised to secure its sixth consecutive year as the top seller of full-size pickups and its 51st year leading in full-size SUV sales. By the second half of 2024, GM became the second-largest seller of electric vehicles in the US, thanks to a portfolio of 13 EV models across Chevrolet, Cadillac, and GMC. Chevrolet is now the fastest-growing EV brand in the US and ranks second among all electric vehicle brands in terms of sales.

GM’s capital spending for 2025 remains in the range of $10 billion to $11 billion, with projections of $10 billion to $12 billion annually through 2027. This reflects the company’s focus on US manufacturing, key programs, and efficiency measures.

General Motors is paving the way for the future of transportation, utilizing cutting-edge technology to create safer, smarter, and lower-emission cars, trucks, and SUVs. The company’s Buick, Cadillac, Chevrolet, and GMC brands provide an extensive range of innovative gasoline-powered vehicles and a broad selection of EVs, steering the industry toward an all-electric future.