GM Announces $4B US Investment Expanding Gas, EV Vehicle Production

General Motors is investing $4 billion to boost its U.S. manufacturing operations by expanding production of both gasoline-powered and electric vehicles, shifting some assembly from Mexico to American plants by 2027. This investment includes retooling the Orion Assembly plant in Michigan to produce gasoline full-size SUVs and light-duty pickups instead of electric vehicles, reflecting a strategic pullback on electrification due to softer-than-expected EV demand and new tariffs. GM's Factory ZERO in Detroit remains the dedicated site for electric models like the Chevrolet Silverado EV and GMC Hummer EV, while plants in Kansas and Tennessee will increase production of popular gasoline-powered vehicles such as the Chevrolet Equinox and Blazer. The move is a response to the Trump administration's 25% tariffs on imported vehicles and parts, as well as cooling consumer interest in electric vehicles, prompting GM to balance its lineup between internal combustion engines and EVs. Although GM maintains its belief in an all-electric future, analysts note the company has effectively abandoned its earlier goal of producing only electric vehicles by 2035, citing the changing regulatory environment and market dynamics. CEO Mary Barra emphasized the company's commitment to American manufacturing and offering customers a broad range of vehicles they love.