GM’s $4 billion US plant investment will allow production ‘rebalance’ in light of tariffs, slowing EV adoption
From Yahoo Finance: 2025-06-11 17:41:00
General Motors (GM) plans to invest $4 billion in US plants to expand production of certain vehicles and reshore production from Mexico due to uncertainty over Trump’s tariffs. GM will produce gas-powered Chevrolet Blazer and Equinox in the US starting in 2027 and shift EV production to a Michigan plant.
GM was No. 1 in full-size pickup sales during Q1, selling over 200,000 units, its best first quarter since 2007. The company also saw a 31% increase in sales of models like Tahoe and Yukon. Despite slowing EV demand, GM plans to optimize production to meet consumer needs.
GM expects a $4 to $5 billion hit to EBIT due to tariff exposure, mitigating up to 30% of costs through remediation and cost-cutting efforts. Despite tariff uncertainty, GM has maintained pricing and market share, even as others cut prices. Peak tariff exposure and impact are expected in the second quarter.
GM is not altering imports in markets like Korea, where popular models like Buick Encore GX, Envista, Chevy Trailblazer, and Trax are produced. The company’s moves to rebalance production, shift powertrains, and address tariffs show a strategic approach to meeting consumer demand and regulatory challenges.