And the gas-powered Blazer, controversial when it was launched at a GM plant in Mexico, will be produced in Spring Hill, Tennessee, the sources confirmed.
GM’s Ramos Arizpe, Mexico, production facility makes the Chevy Equinox EV, Blazer and Blazer EV, plus the Cadillac Optiq EV.
GM did not comment on how exactly its Mexico production would change as a result of the new U.S. investment.
But union officials are pushing for more U.S. plant investment, and have pointed out that Stellantis has available capacity at many of its major facilities.
Ford Motor Co. often boasts that 80% of its vehicles for sale in the United States are already built in its home country.
General Motors Corp. Three people with knowledge of the matter told The Detroit News that the company intends to spend $4 billion to relocate production from Mexico to three facilities in the US, including its closed Orion Assembly plant in the Detroit suburbs.
Orion, which was being retooled to build electric trucks prior to market demand waning, is getting ready to produce full-size SUVs and light-duty pickups. The Equinox compact SUV, which runs on gas, is expected to arrive in Fairfax, Kansas. Additionally, the sources confirmed that the gas-powered Blazer, which caused controversy when it was introduced at a GM plant in Mexico, will be manufactured in Spring Hill, Tennessee.
GM posted information on its website after being contacted by The Detroit News on Tuesday afternoon regarding the developments.
According to a statement from GM CEO Mary Barra, “We believe American innovation and manufacturing expertise will drive the future of transportation.”. The announcement made today shows our continued dedication to producing automobiles in the United States. S. . as well as to help American jobs. Our goal is to provide our customers with a wide selection of vehicles that they will love. “.”.
In addition to limiting exposure to expensive import tariffs implemented by President Donald Trump, the move is partially motivated by the rise in demand for highly profitable SUVs. Forcefully bringing about a manufacturing revival in the industrial heartland and elsewhere is his objective. In 2022, when GM revealed its intention to retool Orion for the production of electric trucks, the state projected that the project would retain 1,000 jobs and generate 2,300 jobs.
White House spokesperson Kush Desai said in a statement that President Trump has shown a greater interest in reviving America’s once-great auto industry, and that GM’s investment announcement builds on trillions of dollars in other historic investment commitments to Make in America.
Considered a significant win for Trump’s trade-and-tariffs policy, GM’s manufacturing reshoring may be a sign of more actions by both domestic and foreign manufacturers. Most likely, this is one of the biggest reshorings of U.S. companies, if not the biggest. A. auto manufacturing ever since Trump was elected to a second term in office.
“Today’s huge investment in Lake Orion is just the latest chapter in GM and Michigan’s long, rich history,” said Michigan Gov. In a statement, Gretchen Whitmer said. In order to preserve thousands of well-paying, union auto jobs, I am thankful to GM for relocating more auto manufacturing to Michigan. “..”.
Congressional delegation members from Michigan also applauded the automaker’s action.
“This investment is a huge win for hard-working Michiganders and a game-changer for our district,” Rep. In a statement, R-Bruce Township’s Lisa McClain said. We’ve been claiming for months that the President’s efforts will succeed and that more businesses will once more choose to invest in America.
“This is good news for Michigan’s workers and our leadership position in the global auto industry,” said Rep. According to a statement from Ann Arbor Democrat Debbie Dingell. “We need to continue producing a strong product line that consumers desire, including electric vehicles, if we want to stay at the top. “,”.
Reshoring American auto jobs is something Trump has long promised, both during his two terms in the White House and on the Michigan campaign trail. Since his return to Washington in January, Trump has pushed automakers to increase their production in the US through tariff policies.
At a visit to Macomb County in April to commemorate the first 100 days of his second term, Trump declared, “If they don’t do this, we give them a little bit of time before we slaughter them.”.
During that same evening, Trump also declared his intention to provide “partial tariff rebates” to American automakers for a period of approximately two years. Prior to this, he had intended to implement a 25% tariff on foreign auto parts in May. He claimed that a “small amount of flexibility” would be offered by the new rebates. “.”.
In addition, the Republican president has implemented a 25 percent tariff on all automobiles and auto parts imported from Canada and Mexico that do not adhere to the nations’ U.S. A. -free trade agreement between Canada and Mexico.
After a great deal of lobbying and direct discussions with the Detroit Three automakers, he granted the USMCA exemption. With Michigan probably suffering the most, the companies warned of severe repercussions from upsetting North America’s intricately linked automotive supply chain.
A $888 million investment in V-8 propulsion engines at GM’s Tonawanda Propulsion plant near Buffalo, New York, was announced last month. The significant investment, according to CEO Mary Barra at the time, demonstrates “our commitment to strengthening American manufacturing and supporting jobs in the U.S.”. S. “.”.
Prior to Trump providing some relief to automakers, GM had previously revised its guidance for the year to include tariff exposure of $4 billion to $5 billion.
Barra had stated that by tightening budgeting and shifting more manufacturing and supplies to the US, the company hoped to offset tariff costs by roughly 30%. A significant step toward keeping that promise is the production shift from Mexico to the United States, which is anticipated to begin in 2027.
According to GM, its Fort Wayne Assembly plant in Indiana is producing more full-size, light-duty trucks. And it decided to eliminate a shift at its Oshawa Assembly plant in Ontario, which manufactures light- and heavy-duty pickups, citing Trump’s tariffs.
After several production delays, GM had previously intended to retool Orion Assembly to produce electric trucks starting in mid-2026. Initial plans called for Orion Assembly, which previously produced the all-electric Chevrolet Bolt, to begin producing EV trucks in late 2024.
GM produces the Cadillac Optiq EV, Chevy Equinox EV, and Blazer EV at its Ramos Arizpe, Mexico, plant. The light-duty Silverado and Sierra trucks are manufactured by Silao Assembly, while the Equinox and GMC Terrain are made by San Luis Potosi Assembly.
The Detroit-based carmaker would be moving production out of Mexico, according to sources familiar with the matter who spoke to The News. However, Mexico’s economy minister later claimed that GM had promised him the company would continue to operate south of the United States. S. border.
“GM called to let me know that its employees and plants in Ramos Arizpe, Silao, San Luis Potosí, and Toluca will continue to operate as usual. There won’t be any layoffs or closures. “GM stays in and with Mexico,” stated Economy Minister Marcelo Ebrard in a social media post in Spanish.
Trump’s intermittent tariffs earlier this year were handled coolly by Mexican President Claudia Sheinbaum, who regularly sent Ebrard to Washington to meet with trade and economic officials from the Trump administration.
Despite this, Trump’s fluctuating, America-first trade policies are contributing to the nation’s economic slowdown. These difficulties would be exacerbated if GM moved its production to Mexico.
When questioned about the conversation with Ebrard, the company stated that it was not making any layoff announcements in Mexico related to the announcement on Tuesday. GM did not address the specific ways in which the new U.S. regulations would affect its production in Mexico. S. money spent.
Following a contentious break in Mexico, the Blazer is back in the United States. The last full-size model manufactured in the US was at a now-closed facility in Janesville, Wisconsin. To the dismay and indignation of the United Auto Workers, GM announced in 2018 that it would resume producing the crossover SUV in Ramos Arizpe.
In 2019, when GM attempted to briefly display the Blazer at the Tigers’ ballpark fountain, a local TV station conducted a survey to find out if viewers thought it was appropriate to highlight the vehicle despite it being built in Mexico. In response, GM started producing a Chevrolet Traverse in Michigan to replace the Blazer.
For months, we’ve stated that the auto industry could make use of U’s excess capacity. S. According to a statement released by UAW President Shawn Fain, “auto plants and invest billions into our factories, our communities, and American autoworkers.”. “With a huge $4 billion investment that will generate thousands of well-paying union jobs, GM is demonstrating that strategic auto tariffs work while other companies are dragging their feet. “,”.
Tariffs have prevented Stellantis NV from announcing any production moves to the US. However, just a few days after Trump took office, the carmaker did recommit to a number of significant U.S. A. investments in plants, such as constructing the next-generation Dodge Durango in Detroit, reopening an assembly plant in Illinois, and upgrading important facilities in Ohio and Indiana.
The announcements alleviated the UAW’s worries that the automaker was prepared to relocate some of that work abroad. However, union representatives are urging more U. S. . plant investment, as well as pointing out that many of Stellantis’ major facilities have available capacity.
Late last month, Doug Ostermann, the chief financial officer of Stellantis, stated that the company aims to lower its tariff costs by bringing more of its suppliers of parts to the United States. He added that the business would look into relocating some of its own production in the long run.
More than 40 percent of the carmaker’s yearly U.S. S. . sales, and in recent months, the tariffs have caused some of its large overseas plants, including those in Canada and Mexico, to temporarily halt or reduce production.
Ford Motor Company. frequently brags that 80 percent of the cars it sells in the US are already produced in its native nation. Additionally, the United States is where all of its full-size SUVs and profitable full-size pickups are put together.
Luke Ramseth, a staff writer, contributed.
