DETROIT (AP) —Shares of General Motors rose Wednesday after announcing plans to invest $4 billion to shift some production from Mexico to U.S. manufacturing plants as the automaker navigates tariffs that could drive prices higher.
President Trump signed executive orders in April, relaxing some of his 25% tariffs on automobiles and auto parts, a significant reversal as the import taxes threatened to hurt domestic manufacturers.
Automakers and independent analyses say the tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide. Trump portrayed the changes as a bridge toward automakers moving more production into the United States.
GM said late Tuesday that the investment will be made over the next two years and is for its gas and electric vehicles. The company will add production of the gas-powered Chevrolet Blazer and Chevrolet Equinox, which are made in Mexico, to two American plants starting in 2027. The Blazer will be produced at GM's Spring Hill, Tennessee plant, while the Equinox will be made at its Kansas City, Kansas facility.
GM will also begin making gas-powered full-size SUVs and light duty pickup trucks at its Orion Township, Michigan plant, which was previously being reconfigured to make electric vehicles until demand for such cars weakened.
The new investment will give GM the ability to assemble more than 2 million vehicles per year in the U.S.
CEO Mary Barra said in a statement on Tuesday that GM is committed to building vehicles in the U.S. and supporting American jobs.
GM has 50 U.S. manufacturing plants and parts facilities in 19 states, including 11 vehicle assembly plants. The company says that almost 1 million people in the U.S. depend on it for their livelihood, including employees, suppliers, and dealers.
Last month GM lowered its profit expectations for the year as it braces for a potential impact from auto tariffs as high as $5 billion in 2025. The automaker now foresees full-year adjusted earnings before interest and taxes in a range of $10 billion to $12.5 billion. The guidance includes a current tariff exposure of $4 billion to $5 billion. GM previously predicted 2025 adjusted EBIT between $13.7 billion and $15.7 billion.
Shares of General Motors Co. rose almost 1% before the opening bell Wednesday.
Washington – U.S. Senator Roger Marshall, M.D. (R-Kansas) applauded today’s announcement from General Motors that they will be investing $4 billion into U.S. manufacturing plants, including in Kansas City, Kansas.
“General Motors’ announcement to expand production in Kansas is a clear sign that President Trump’s policies are working and bringing back good-paying manufacturing jobs,” said Senator Marshall. “This investment will be a huge boon for the hard-working men and women in the area, and I look forward to seeing what developments come next under this White House.”
Under President Trump’s leadership, Made-in-America is being incentivized again, giving companies more reasons than ever to invest in America.
Additionally, the President’s ‘One Big, Beautiful Bill’ will lower the tax rate for those producing products, like vehicles, in the United States, and those who purchase American-made cars will receive Made-in-America Auto Tax breaks.
Background:
- Senator Marshall previously introduced the Choice in Automobile Retail Sales (CARS) Act to counter the Biden Administration’s radical environmental agenda and executive overreach by preventing the implementation of a proposed rule and other regulations that essentially seek to eliminate the internal combustion engine.
- Senator Marshall also previously led calls for the withdrawal of the Biden Administration’s proposed Corporate Average Fuel Economy (CAFE) standards for passenger cars and light-duty trucks, which would have effectively mandated the mass production of electric vehicles (EVs) and a phase-out of gas-powered cars and trucks.