General Motors CFO Says $4 Billion Investment Will Allow Company To Rebalance Production Amid Trump Tariffs

General Motors Co. GM CFO Paul Jacobson says the company's $4 billion investment in its manufacturing units will help the Detroit-based automaker rebalance production amid U.S. President Donald Trump's tariff uncertainty.

What Happened: "…As we look at our landscape, as we look at the world around us, whether it’s the tariff situation, EV adoption, there’s a real opportunity to rebalance some of our manufacturing," Jacobson said while speaking to Yahoo Finance.

The company had earlier said it would be moving some models like the Chevrolet Blazer and the Equinox out of its Mexico production facility and into the U.S. in 2027.

Jacobson also outlined a slowdown in EV demand in the U.S. and how the company's Orion plant is transitioning to produce full-size SUVs as well as pickup trucks. "It’s clear that EV demand has slowed a bit, so we’re able to fill that back at Factory Zero and really convert Orion to a much better-utilized plant for full-size SUVs," he said.

The CFO also said that GM's peak exposure to Trump's tariffs, as well as the impact of the tariffs, would come up in Q2 2025.

Why It Matters: The news comes in as GM has invested over $888 million in its V-8 engine plant in Buffalo, New York, which marks the company's single largest investment in engine production.

The investment as well as rebalancing also coincides with GM's push for California to reverse its EV mandate, which the company said does not align with market realities.

However, despite the push for ICE vehicles, GM still holds a 14.4% EV market share in the U.S. and is the second-largest EV maker in the country behind Tesla Inc. TSLA.

Elsewhere, suppliers for the big three automakers in Detroit, including GM, received temporary licenses to export critical rare earth minerals and alloys from China, in what could prove to be a major boost for the company amid trade tensions.

GM scores well on Value, Growth and Quality metrics, while also offering satisfactory momentum. For more such insights, sign up for Benzinga Edge Stock Rankings today!

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