General Motors has announced a sweeping new investment plan, committing approximately $4 billion over the next two years to boost domestic vehicle production, reinforcing its dual commitment to both electric and gasoline-powered vehicles in the U.S.
The new capital injection will expand GM’s annual production capacity in the U.S. to over 2 million vehicles, supporting sustained demand for full-size trucks, SUVs, and a growing range of EVs. This follows closely on GM’s $888 million investment in its Tonawanda Propulsion plant in New York for the next-generation V-8 engines.
Expansion Across Key U.S. Plants
GM detailed specific enhancements at three major production facilities:
- Orion Assembly (Michigan): Starting early 2027, Orion will begin producing gas-powered full-size SUVs and light-duty pickups. Its EV production—Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV—will be consolidated at Factory ZERO in Detroit-Hamtramck.
- Fairfax Assembly (Kansas): The Kansas facility will start building the gas-powered Chevrolet Equinox in mid-2027, supporting demand for the popular SUV whose sales surged 30% year-over-year in Q1 2025. The plant will also begin production of the new 2027 Chevrolet Bolt EV by year’s end, with additional investments planned for next-generation affordable EVs.
- Spring Hill Manufacturing (Tennessee): In 2027, production of the gas-powered Chevrolet Blazer will begin at this site, alongside GM’s Cadillac LYRIQ, VISTIQ EVs, and Cadillac XT5.
CEO Statement: Innovation Powered by American Workforce
GM Chair and CEO Mary Barra emphasized the importance of this strategy, saying:
We believe the future of transportation will be driven by American innovation and manufacturing expertise. Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs.
GM President Mark Reuss added:
This is about hardworking Americans making vehicles they’re proud to build — and customers are proud to own.
EV Momentum and Market Share Gains
GM is also riding high on a wave of strong EV momentum. As of late 2024, the automaker became the #2 seller of electric vehicles in the U.S., with 13 EV models across Chevrolet, Cadillac, and GMC. Chevrolet has emerged as the fastest-growing EV brand, second only to Tesla in EV sales.
The company also continues to dominate traditional vehicle segments — now in its sixth consecutive year leading full-size pickup sales and 51st straight year as the top seller in full-size SUVs.
Long-Term Capital Strategy
GM’s 2025 capital expenditure guidance remains at $10–11 billion, with projected annual investments of $10–12 billion through 2027. The funding will prioritize U.S. operations, product flexibility, and streamlined manufacturing efficiency.
A Strategic Balance of Powertrains
As the auto industry grapples with uncertain EV adoption rates and infrastructure gaps, GM’s dual strategy reflects a calculated balance between electrification and profitable internal combustion vehicles.
With 50 manufacturing and parts facilities across 19 states, GM’s expansive U.S. footprint supports nearly one million American jobs, including employees, suppliers, and dealers.
