Leading U.S. automaker General Motors Co. GM has unveiled a multibillion-dollar plan to reinforce its manufacturing footprint in the country, spanning both its new electric vehicles and its traditional gas-powered favorites.
What Happened: On Tuesday, the Detroit-based giant announced $4 billion in fresh investments across several of its U.S. manufacturing plants, aimed at expanding finished vehicle output and enabling GM to assemble more than 2 million vehicles each year domestically, up from 1.5 million currently.
This capital is set to be deployed over the next two years, targeting the company’s facilities across Michigan, Kansas, and Tennessee.
The move also underscores GM’s commitment to its internal combustion engine (ICE) models, even as it continues to expand its EV offerings.
The Orion Assembly in Michigan will begin producing gas-powered full-size SUVs and light-duty trucks in early 2027, whereas the Detroit-Hamtramck Factory ZERO will be dedicated to EV production, for models such as the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and the GMC Hummer EV, among others.
“Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs,” said GM's chair and CEO, Mary Barra.
President Mark Reuss says, “This is about hardworking Americans making vehicles they are proud to build and that customers are proud to own,” while highlighting the scale of the company’s manufacturing footprint and the positive economic impact it has on communities and the country.
The company reiterates that its 2025 capital spending guidance remains unchanged at between $10 billion and $11 billion, despite its plan to ramp up domestic manufacturing.
Why It Matters: The company’s CEO, Barra, recently came out in support of President Donald Trump’s tariffs, calling them a tool to “level the playing field.”
“For decades now, it has not been a level playing field for us automakers globally, with either tariffs or non-tariff trade barriers,” Barra said.
This was just weeks after she said that the tariffs could cost the company anywhere between “$4 to $5 billion,” while committing to keep prices the same nonetheless.
Late last month, GM invested $888 million in its NY V-8 Engine Plant at the Tonawanda Propulsion facility, marking the “single largest investment” by the company in a manufacturing plant, which once again underscores its commitment to ICE models and domestic manufacturing.
Price Action: Shares of General Motors were up 2.09% on Tuesday, trading at $48.93, and are up 0.14% after hours.
According to Benzinga’s Edge Stock Rankings, GM shares score well on Value, Growth and Quality, but lag on Momentum. It has a favorable price trend in the short term, but is unfavorable in the medium and long term. Click here for deeper insights into the stock and how it compares with peers and competitors.
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