GM Investing $4 Billion in its U.S. Manufacturing Plants

Yesterday, General Motors announced plans to invest approximately $4 billion over the next two years in its domestic manufacturing plants. This significant investment underscores GM’s commitment to boosting U.S. production of both gasoline-powered and electric vehicles, further strengthening the company’s position as a leader in American automotive manufacturing.

The new investment will enable GM to assemble more than two million vehicles annually in the U.S., expanding capacity to meet sustained demand for popular models. This announcement follows GM’s recent commitment to invest $888 million in the Tonawanda Propulsion plant near Buffalo, New York, to support its next-generation V-8 engine.

Key Plant Expansions

GM’s latest manufacturing plans include strategic investments in three major plants:

• Orion Assembly, Orion Township, Michigan: Starting in early 2027, Orion will begin producing gas-powered full-size SUVs and light duty pickup trucks. As a result, Factory ZERO in Detroit-Hamtramck will focus exclusively on assembling GM’s growing portfolio of electric pickups and SUVs, including the Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV.
  
  
• Fairfax Assembly, Kansas City, Kansas: Fairfax Assembly will begin building the gas-powered Chevrolet Equinox in mid-2027. With the Equinox’s sales up more than 30% year-over-year in Q1 2025, this move strengthens GM’s gas vehicle portfolio. By the end of this year, Fairfax will also start producing the 2027 Chevrolet Bolt EV and expects further investments for GM’s next generation of affordable EVs.
  
  
• Spring Hill Manufacturing, Spring Hill, Tennessee: Production of the gas-powered Chevrolet Blazer will begin at Spring Hill in 2027, joining the Cadillac LYRIQ and VISTIQ EVs, and the Cadillac XT5, reinforcing GM’s blended approach to gas and electric vehicle manufacturing.

A Vital Role in the U.S. Economy

GM’s robust domestic footprint includes 50 U.S. manufacturing plants and parts facilities in 19 states, with 11 dedicated vehicle assembly plants. Nearly one million Americans rely on GM for their livelihood—including employees, suppliers, and dealers. GM has consistently posted strong U.S. sales and continues to lead the market in key segments: it is on track for its sixth straight year as the full-size pickup sales leader, and its 51st consecutive year as the leader in full-size SUVs. The second half of 2024 also saw GM become the #2 EV seller in the U.S. market, with Chevrolet’s EV brand being the fastest-growing and second-best-selling overall.

Looking Ahead

GM’s 2025 capital spending guidance remains unchanged at $10 billion to $11 billion, with anticipated annual capital spending between $10 billion and $12 billion through 2027. This reflects GM’s ongoing prioritization of U.S. investments, key program development, and efficiency improvements.

As GM drives towards an all-electric future, it remains committed to building vehicles that are safer, smarter, and lower in emissions, while continuing to meet the robust demand for gas-powered models that Americans love.

EVinfo.net’s Take

If you are an EV advocate worried about GM’s gas-powered investments, don’t be. American EV adoption is still growing.

GM’s EV sales were up 94%, and nearly 300,000 new electric vehicles (EVs) were sold in the first quarter of 2025 in the U.S., according to the latest report from Kelley Blue Book, (via parent company Cox Auto), an increase of 11.4% year over year.

EV adoption continues to grow quickly, and GM is an important part of it. Adoption will keep growing, although it will likely see more challenges this year in the US. Long term, EVs will win over gas, mostly due to their incredible cost savings.