General Motors Pours More Money Into Truck And SUV Production
Key Points
- GM is investing $550 million in two component plants—$300 million for Romulus, Michigan (10-speed transmissions) and $250 million for Parma, Ohio (stamping operations), with Parma expected to add about 100 jobs.
- The upgrades support major production shifts beginning in 2027, including future builds of the Cadillac Escalade, Chevrolet Silverado, GMC Sierra, Chevrolet Equinox, and next-generation Bolt EV.
- The spending is part of GM’s broader effort to relocate manufacturing to the U.S. as a defensive move against tariffs, bringing its total planned U.S. investment to nearly $5.5 billion.
General Motors is pouring more cash into its U.S. manufacturing footprint as the automaker reorganizes pieces of its North American production operations to reduce exposure to tariffs and stabilize its supply chain. Just don't ask the Canadians about it.
This week, the automaker committed $550 million to two component plants in Michigan and Ohio as it prepares for 2027. Parma Metal Center near Cleveland will receive $250 million for new stamping operations, and GM expects roughly 100 new jobs there.
Aside from stampings, Parma also processes steel that gets shipped out to GM's other component manufacturing facilities across the country.
Separately, GM confirmed to the Detroit Free Press that $300 million will go to the Romulus Propulsion Systems facility outside Detroit, where the company builds its 10-speed automatic transmission. The 10-speed gearbox anchors most of GM’s full-size trucks and SUV lineup, including the Chevrolet Silverado, GMC Sierra, and Cadillac Escalade. The investment will only upgrade equipment but won’t expand headcount.
Both facilities support several other GM's vehicle assembly plants that are being primed for increased output later this decade. That includes Orion Assembly in Michigan, which will pump out gas-powered versions of GM’s full-size SUVs and pickups, and Fairfax Assembly in Kansas, which is preparing for the Chevrolet Equinox and the next-generation Bolt EV.
The new cash is almost a drop in the bucket compared to the commitments GM already made earlier this year. $4 billion for Orion, Fairfax, and Spring Hill, Tennessee, for vehicle assembly, including repatriating some models that were being built in Mexico. And you can't forget the $888 million for the Gen VI small block V8 at its Tonawanda engine plant in New York. Together, GM’s planned outlay for U.S. facilities now approaches $5.5 billion.
The company has said Trump's tariff regime could cost the company as much as $5 billion annually, a hit large enough to push the company to spend that same amount on product allocation and reshoring efforts.
“Our manufacturing teams are the driving force behind GM’s success, and we’re committed to giving them the tools and training they need to excel in today’s advanced manufacturing world,” said Mike Trevorrow, GM's senior vice president of global manufacturing. “When we invest in our workforce, we’re not only building great vehicles — we’re helping secure the future of American manufacturing.”
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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I don´t need a truck and I definitively will never buy an SUV or a crossover. So until GM doesn´t sell sedans, I´ll buy elswhere.
The inflationary cycle continues. As more production comes on-shore, people will see that labor rates are MUCH higher in the U.S., insurance is WAY more expensive (always less for more), mineral production costs are WAY higher (environmental regulations, labor, etc) on and on. This shouldn't surprise anyone. Cities should open up bicycle and e-bike only full lanes for that affordable transportation. They'll need it.