GM Announces Big Investment Into Combustion Cars
General Motors is recommitting to gasoline-powered vehicles after announcing a $4 billion investment for its U.S. manufacturing footprint.
Key Points
- GM will invest $4 billion in U.S. factories to expand production of gas-powered SUVs and trucks, reversing plans to convert the Michigan Orion plant into an EV-only facility.
- Production of the Chevrolet Blazer and Equinox—previously built in Mexico—will be added to plants in Tennessee and Kansas, respectively, starting in 2027.
- The shift comes amid slowing EV demand and new tariffs on imported vehicles, aligning GM’s strategy more closely with U.S. trade policy and domestic manufacturing goals.
General Motors will invest $4 billion in its U.S. manufacturing operations as it reshuffles the deck in response to new trade tariffs and soft demand for electric vehicles. The automaker announced it plans to add or expand gas-powered SUV production at three American plants, including facilities in Michigan, Kansas, and Tennessee.
The automaker began producing the Chevrolet Blazer at Spring Hill and the Equinox at Fairfax starting in 2027, both vehicles are currently built in Mexico. Equinox production will continue in Mexico for export to markets outside North America, but every Equinox sold in America will now come from the Kansas facility. Fairfax will also begin producing the 2027 Chevrolet Bolt EV by the end of this year.
All gas-powered Blazer production will fully transition to Tennessee from Mexico. Interestingly, GM did not mention moving Blazer EV production to Spring Hill, that facility already produces the Cadillac Lyriq and Vistiq EVs.
The Orion Assembly plant in Michigan was just revamped to be the exclusive home of GM's growing fleet of electric pickups. Instead, it will be retooled to produce internal combustion full-size SUVs and light-duty trucks beginning in 2027. There have been rumors that Orion could be a home for hybrid versions of GM's full-size lineup, but that remains unconfirmed.
GM’s Factory ZERO in Detroit will now remain as the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EVs.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said Mary Barra, Chair and CEO. “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.”
These changes are a direct response to the Trump administration's 25% tariffs on imported vehicles and parts, which were enacted earlier this year. At the same time, the automaker says it has not abandoned its EV goals and says the decision to delay or downsize electric-specific production is necessitated by policy and consumer trends.
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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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Good. Most people don't want EVs.
LOL, this after the gung ho EV's are our future big push.