General Motors Co. has unveiled plans for a $4 billion investment aimed at relocating production operations from Mexico to three facilities in the United States, including the previously closed Orion Assembly plant in suburban Detroit, as reported by sources familiar with the matter.
The Orion plant is set to produce full-size SUVs and light-duty pickups, having previously been slated for retooling to manufacture electric trucks — a project that was delayed due to changing market demands. Meanwhile, the gas-powered Equinox compact SUV will be produced in Fairfax, Kansas, and the gas-powered Blazer, which faced scrutiny when produced in Mexico, will move to Spring Hill, Tennessee, as confirmed by the sources.
Following inquiries from The Detroit News on Tuesday, GM shared further details on its official website.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said GM CEO Mary Barra. “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs. We’re focused on giving customers choice and offering a broad range of vehicles they love.”
This strategic shift is partly in response to the growing demand for high-profit SUVs and reflects efforts to reduce dependence on costly import tariffs instituted during President Donald Trump’s administration, which aimed to revive manufacturing in the heartland. An earlier GM announcement in 2022 regarding the Orion facility was expected to generate 2,300 new jobs and retain an additional 1,000 positions.
White House spokesperson Kush Desai remarked, “No president has taken a stronger interest in reviving America’s once-great auto industry than President Trump, and GM’s investment announcement builds on trillions of dollars in other historic investment commitments to Make in America.”
GM’s decision to bring manufacturing back to the U.S. is seen as a significant achievement for Trump’s trade and tariff policies, potentially setting a precedent for future relocations by both foreign and domestic manufacturers. The transition ranks among the largest reshoring movements in U.S. auto manufacturing since Trump began his second term.
“GM and Michigan have a long, rich history, and today’s massive investment in Lake Orion is just the latest chapter,” commented Michigan Governor Gretchen Whitmer. “I am grateful to GM for bringing more auto manufacturing back home to Michigan, protecting thousands of good-paying, union auto jobs.”
Members of Michigan’s congressional delegation also expressed support for GM’s initiative.
“This investment is a game-changer for our district and a big win for hard-working Michiganders,” stated Rep. Lisa McClain, R-Bruce Township. “For months, we have said the President’s efforts would pay off and more companies would invest in America again.”
Rep. Debbie Dingell, D-Ann Arbor, added, “This is good news for Michigan’s workers and our role as a leader in the global auto industry. In order to remain a leader, we must be producing a robust product line that consumers want, including electric vehicles.”
Trump has long promised to reshore American auto jobs during his campaigns and both tenures in office, applying tariff pressures to incentivize domestic production. In a visit to Macomb County, Trump remarked, “We give them a little bit of time before we slaughter them if they don’t do this.”
He also proposed offering “partial tariff rebates” for approximately two years to companies that assemble cars in the U.S., shifting from his initial plan of a 25% tariff on foreign auto parts scheduled to take effect in May.
In an attempt to protect the interconnected auto supply chain across North America, Trump had implemented a 25% tariff on all imported vehicles and auto parts from Canada and Mexico that did not comply with the USMCA.
Last month, GM revealed an $888 million investment in V-8 propulsion engines at its Tonawanda Propulsion plant in Buffalo, New York, underscoring its commitment to enhancing American manufacturing and preserving jobs domestically.
GM recently adjusted its annual guidance, anticipating tariff exposure of $4 billion to $5 billion, although this was before Trump extended tariff relief to automakers. Barra has indicated that the company aims to reduce tariff costs by about 30% through tighter budgeting and increased sourcing and manufacturing in the U.S. The shift in production from Mexico is expected to begin in 2027, making significant strides towards that objective.
In addition to moving operations to the U.S., GM is increasing full-size, light-duty truck production at its Fort Wayne Assembly plant in Indiana. It also cited tariffs as a reason for reducing a shift at its Oshawa Assembly plant in Ontario, which produces both light- and heavy-duty pickups.
The Orion Assembly plant, formerly responsible for manufacturing the all-electric Chevrolet Bolt, initially planned to begin producing electric trucks by mid-2026 after multiple delays. GM’s manufacturing facility in Ramos Arizpe, Mexico, currently produces the Chevy Equinox EV, Blazer and Blazer EV, along with the Cadillac Optiq EV, while San Luis Potosi and Silao facilities manufacture additional models.
Despite the revelations about changing production plans, Mexico’s economy minister stated that GM assured him its Mexican plants would maintain current operations. Marcelo Ebrard shared in a social media post, “I received a call from GM to inform me that its plants in Ramos Arizpe, Silao, San Luis Potosí and Toluca will continue operating normally, as will their personnel. No closures or layoffs are anticipated. GM remains in and with Mexico.”
Mexican President Claudia Sheinbaum has recently been commended for her management of Trump’s unpredictable tariffs, often sending Ebrard to engage in discussions with U.S. officials. Nevertheless, the Mexican economy is grappling with a downturn, exacerbated in part by the fluctuation of trade policies.
On the topic of GM’s production changes, the company did not discuss potential job impacts in Mexico. The previous full-size Blazer was last produced in the U.S. at a now-closed plant in Janesville, Wisconsin. GM announced in 2018 that it would manufacture the cross-over SUV in Mexico, which drew criticism from the United Auto Workers.
UAW President Shawn Fain expressed support for GM’s recent investment, stating, “We’ve said for months that the auto industry could utilize excess capacity at U.S. auto plants and invest billions into our factories, our communities, and American autoworkers. While other companies drag their feet, GM is showing that strategic auto tariffs work with a massive $4 billion investment that will create thousands of good-paying union jobs.”
Stellantis NV has yet to announce any production shifts to the U.S. due to tariffs but reaffirmed its commitment to investing in U.S. plants for future projects. Ford Motor Co. reports that 80% of its vehicles sold in the U.S. are built domestically, with all full-size pickups and highly profitable SUVs assembled within the country.