GM Shares its $4B Factory Plan to Support U.S. Jobs, Future EVs and SUVs

• GM will invest $4 billion to retool three U.S. plants for EV and gasoline vehicle production.

• Orion Assembly to restart in 2027, shifting from EV trucks to full-size SUVs and pickups.

• Fairfax plant to build redesigned Chevy Bolt EV and combustion Equinox alongside Spring Hill’s Blazer.

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General Motors will invest nearly $4 billion across three U.S. manufacturing plants to support production of both internal combustion engine (ICE) vehicles and a new generation of lower-cost electric vehicles (EV), the automaker announced on June 10.

The investment, to be distributed over the next two years, will support factory upgrades at Orion Assembly in Michigan, Fairfax Assembly in Kansas, and Spring Hill Manufacturing in Tennessee. GM did not specify how much of the $4 billion will be allocated to each site.

The company stated the funds will allow it to expand its annual vehicle production capacity in the U.S. to more than 2 million units. The strategy supports both its current internal combustion offerings and its long-term electrification goals.

Factory Retooling and Model Realignment

At Orion Assembly, which has been idle since late 2023, GM will shift away from its original plan to build electric pickups and instead manufacture gasoline-powered full-size SUVs and light-duty pickups starting in early 2027. Electric truck production will remain concentrated at GM’s Factory Zero plant in Detroit, which produces the Chevrolet Silverado EV, GMC Sierra EV, Hummer EV, and Cadillac Escalade IQ.

Fairfax Assembly, also undergoing retooling, will resume operations with production of the redesigned Chevrolet Bolt EV and a new internal combustion version of the Chevrolet Equinox. Equinox production is scheduled to begin in mid-2027 and will supplement existing manufacturing at GM’s plant in San Luis Potosi, Mexico. The Bolt EV is expected to re-enter production at the Kansas plant by the end of 2027.

In Tennessee, Spring Hill Manufacturing will take over production of the gasoline-powered Chevrolet Blazer in 2027. This model is currently built in Ramos Arizpe, Mexico, where GM also produces the electric version of the Blazer. Spring Hill will also continue building the Cadillac XT5, as well as the electric Lyriq and Vistiq.

These changes coincide with broader adjustments across GM’s North American manufacturing network. The company recently announced increased output of light-duty full-size pickups at its Fort Wayne, Indiana, facility. Meanwhile, it will reduce pickup production at its Oshawa Assembly plant in Ontario, which is a cause for concern.

GM cited U.S. tariffs on imported vehicles as a key economic factor affecting its strategy. The company estimates that these tariffs will add $4 billion to $5 billion to its operating costs this year, prompting a revision of its full-year earnings outlook.

GM’s latest investment is part of its strategy to spend between $10 billion and $12 billion annually through 2027 on U.S. factory operations. The company recently allocated $888 million to upgrade its propulsion facility in New York for the next generation of V8 engines.

With these investments, GM aims to provide a range of vehicle options across various propulsion technologies, supported by a diversified manufacturing footprint spanning the U.S., Mexico, and Canada.

Source: Automotive News