General Motors plans to increase domestic vehicle production to become the top assembler in the U.S., surpassing Ford. GM CEO Mary Barra announced the goal at the earnings report, aiming to reach 2 million units annually. The move is in response to $3.1 billion in tariff costs from importing vehicles in 2025.

GM could achieve its production goal by 2027, adding gas-powered crossovers to U.S. plants to reduce tariff costs. Ford, historically the top U.S. seller, produced 2.1 million vehicles domestically in 2024. GM, also a major importer, imported 1.23 million vehicles in 2024, nearly half of its U.S. sales.

Ford asserts itself as the leading U.S. auto producer and exporter, emphasizing its commitment to American manufacturing. GM has yet to comment on the production target. Despite lower than expected tariff costs in 2025, GM anticipates increased costs this year due to South Korean vehicle duties.

President Trump’s decision to increase tariffs on South Korean imports may impact GM’s tariff costs. Barra hopes for a trade deal with a 15% tariff on South Korean exports to the U.S. GM is the second-largest U.S. importer of vehicles from South Korea, relying on plants for entry-level vehicles like the Chevrolet Trax.

Read more at CNBC: GM plans to top Ford in U.S. production amid Trump’s tariff