GM to Invest $4 Billion in U.S. Vehicle Production Expansion

The funding will increase both gas-powered and electric vehicle production at three major assembly facilities in Michigan, Kansas and Tennessee.

GM-gas-EV-production-plant-investment
Piego Connally, assembly team leader at the Fairfax Assembly plant in Kansas City, KS. Image courtesy of GM.

General Motors announced a $4 billion investment across U.S. manufacturing plants over the next two years to expand production of both gas-powered and electric vehicles.

The investment will enable GM to assemble more than 2 million vehicles annually in the U.S., reinforcing the company’s dual focus on internal combustion engines and electric vehicle (EV) platforms. The announcement follows GM’s previously disclosed $888 million investment in its Tonawanda Propulsion facility near Buffalo, NY, to support development of its next-generation V-8 engine.

“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said GM Chair and 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.”

The new funding will support expanded vehicle production at three major assembly facilities:

• Orion Assembly in Michigan will begin producing gas-powered full-size SUVs and light-duty pickup trucks in early 2027, shifting the site’s focus from EVs. GM’s Factory ZERO in Detroit will take over exclusive assembly of EV models including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EV variants.

• Fairfax Assembly in Kansas will begin production of the gas-powered Chevrolet Equinox in mid-2027, building on first-quarter 2025 Equinox sales that rose more than 30% year over year. The plant will also begin producing the 2027 Chevrolet Bolt EV later this year and is set for additional investments in GM’s next generation of affordable EVs.

• Spring Hill Manufacturing in Tennessee will add production of the gas-powered Chevrolet Blazer in 2027. The plant already produces Cadillac EV models such as the LYRIQ and VISTIQ, as well as the gas-powered Cadillac XT5.

“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.”

GM operates 50 U.S. manufacturing and parts facilities across 19 states, including 11 assembly plants. Nearly 1 million people rely on GM for employment, including workers, suppliers and dealers.

The company’s production expansion coincides with continued strength in both gas and EV sales. GM expects to lead full-size pickup sales for a sixth consecutive year and has led full-size SUV sales for 51 straight years. In late 2024, GM became the second-largest EV seller in the U.S., offering 13 EV models across its Chevrolet, Cadillac, and GMC brands. Chevrolet is currently the fastest-growing EV brand and holds the No. 2 position among all EV brands.

GM’s capital spending guidance remains unchanged for 2025, projected between $10 billion and $11 billion. Annual capital expenditures through 2027 are expected to range from $10 billion to $12 billion.

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