General Motors revealed plans on Tuesday to invest US$4 billion (A$6.14 billion) in three United States manufacturing plants, a move aimed at expanding domestic production and potentially reshaping the company’s North American supply chain.
The Detroit-based automaker will shift production of two high-demand Chevrolet models - the Blazer and Equinox - from Mexico to U.S. facilities as part of the investment.
The plan, spanning two years, will support both gasoline-powered and electric vehicle production, and is expected to lift GM’s domestic assembly capacity to over two million vehicles annually.
The investment also includes the conversion of an idle Michigan plant, originally designated for all-electric trucks, to produce gasoline-powered vehicles instead.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said GM CEO Mary Barra in a statement.
“Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs. We’re focused on giving customers choice and offering a broad range of vehicles they love.”
The news comes at a time of significant political volatility, as trade talks between the U.S. and Mexico show scant progress. President Donald Trump earlier this year imposed 25% tariffs on imported vehicles and many auto parts.
GM’s move may also be regarded as a validation of the Trump administration’s trade policies and efforts to encourage domestic production through tariffs.
“Today’s news goes well beyond the investment numbers - this is about hardworking Americans making vehicles they are proud to build and that customers are proud to own," said GM President Mark Reuss.
"As you travel the country, you can see firsthand the scale of our manufacturing footprint and the positive economic impact on our communities and our country.”
Meanwhile, GM continues to report robust U.S. sales. The company remains the market leader in full-size pickup trucks for the sixth consecutive year and has led full-size SUV sales for 51 straight years.
In the latter half of 2024, GM climbed to be the second-largest seller of electric vehicles in the U.S., powered by its expanded lineup of 13 EV models under the Chevrolet, Cadillac, and GMC brands. Chevrolet now ranks as the fastest-growing EV brand and second overall in U.S. EV sales.
Despite the new manufacturing commitment, GM said its 2025 capital spending outlook remains unchanged at $10 billion to $11 billion.
Annual capital expenditure is expected to range from $10 billion to $12 billion through 2027, reflecting increased U.S. investment, prioritised strategic programmes, and cost efficiency efforts.
