General Motors (GM) has announced a significant investment of $4 billion in its U.S. manufacturing plants over the next two years. This decision comes as the company aims to boost production of both gas and electric vehicles, allowing it to assemble more than two million vehicles annually in the United States.
The investment will enhance factories located in Michigan, Kansas, and Tennessee, which are responsible for producing some of GM’s most popular models. This shift marks a strategic move to reduce the company’s dependence on its factories in Mexico, reflecting a broader trend among U.S. automakers in response to recent tariffs.
Earlier this year, President Donald Trump imposed a 25 percent tariff on imported vehicles and many auto parts, a move that has influenced GM’s decision. Despite fears that tariffs would drive prices up, recent reports showed a decline in prices for both new and used cars in May.
GM’s commitment to increasing U.S. manufacturing represents one of the most substantial reactions by an automaker to the ongoing tariffs. While there has been no updated trade deal with Mexico, tariffs remain in place for imports from other countries, including the U.K. and China.
Mary Barra, GM’s chair and CEO, emphasized the company’s dedication to American manufacturing and job support. She stated, “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs.” GM’s president, Mark Reuss, echoed this sentiment, highlighting the importance of American workers in the production process.
According to a report from Oxford Economics, GM contributed $39 billion to the U.S. GDP and employed 97,000 workers in automotive manufacturing jobs in 2022. The company operates 50 manufacturing plants and parts facilities across 19 states, with nearly one million people relying on GM for their livelihoods, including employees, suppliers, and dealers.
This investment is expected to create between 3,000 and 4,000 new jobs as GM ramps up production. The company plans to produce its pickups in five factories: three in the U.S. and one each in Canada and Mexico. This move reverses a long-standing trend of shifting manufacturing operations to Mexico, which began in the 1980s due to lower labor costs.
GM’s latest investment highlights its belief in the future of American innovation and manufacturing. As the landscape of tariffs continues to evolve, the company is taking steps to ensure that it can thrive in a changing economic environment.