GM To Invest $4 Bln In U.S. Plants For Gas And Electric Vehicle Expansion

June 10, 2025 06:18 PM PDT | By EODHD
 GM To Invest $4 Bln In U.S. Plants For Gas And Electric Vehicle Expansion
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(RTTNews) - General Motors (GM) announced Tuesday that it plans to invest about $4 billion over the next two years in its domestic manufacturing plants to increase U.S. production of both gas and electric vehicles. According to GM, the new investment will give the company the ability to assemble more than two million vehicles per year in the U.S. This announcement comes on the heels of the company's recently announced plan to invest $888 million in the Tonawanda Propulsion plant near Buffalo, New York to support GM's next-generation V-8 engine. Plants in Michigan, Kansas, and Tennessee will expand finished vehicle production of several of GM's most popular vehicles.

Starting in early 2027, GM will begin producing gas-powered full-size SUVs and pickup trucks at its Orion plant to meet continued strong demand. Following this shift, Factory ZERO in Detroit will serve as the dedicated site for electric vehicles, including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV. By mid-2027, the Fairfax plant will commence production of the gas-powered Chevrolet Equinox, which saw a more than 30% sales increase in the first quarter of 2025. Additionally, production of the 2027 Chevrolet Bolt EV is scheduled to begin by the end of this year. GM also plans to invest further in Fairfax to support its next generation of affordable EVs.

Meanwhile, in 2027, the Spring Hill facility will take on production of the gas-powered Chevrolet Blazer, while continuing to manufacture the Cadillac LYRIQ, VISTIQ, and XT5. GM has a network of 50 U.S. manufacturing plants and parts facilities in 19 states, including 11 vehicle assembly plants. GM said that its 2025 capital spending guidance is unchanged at between $10 billion and $11 billion. The company expects its annual capital spending will be in a range of $10 billion to $12 billion through 2027, reflecting increased investment in the U.S., the prioritization of key programs, and efficiency offsets.

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