GM spending $4B in pivot toward more gas-powered trucks, SUVs

June 11, 2025

(FOX 2) – General Motors is investing $4 billion across three facilities in the U.S. over the next two years as it looks to move some of its manufacturing from Mexico.

While some of the money is for assembling electric vehicles, a large chunk of funding is for building gas-powered models like pickup trucks and mid-size SUVs.  

Big picture view:

GM is spending billions of dollars to shift its manufacturing into the U.S., eyeing three assembly plants in Michigan, Kansas, and Tennessee over the next two years.

The production is for electric and gas-powered vehicles, with investments planned in Orion Township in Michigan, Kansas City, Kansas, and Spring Hill, Tennessee.

At the Orion Assembly plant, GM says its focus will be on production of gas-powered SUVs and light-duty pickup trucks, aiming for early 2027. In the automaker’s announcement, it said its Factory ZERO in Detroit-Hamtramck will be dedicated to building a fleet of EV models, including:

  •  Chevrolet Silverado
  • GMC Sierra
  • Cadillac ESCALADE IQ, 
  • GMC HUMMER EV pickup and SUV

Dig deeper:

At the Kansas and Tennessee plants, GM will be building Chevrolet models like the Equinox, Bolt, Blazer, as well as Cadillac models like the LYRIQ, VISTIQ, and XT5.

There are also future plants to produce electric vehicles at the Fairfax Assembly in Kansas City.

“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,” CEO Mary Barra said in a statement Tuesday.

The move is also an abrupt shift from the last four years when automakers pivoted hard toward building electric vehicles. As lower demand for EVs puts pressure on car companies, gas-powered vehicles are now taking over a larger portion of what the company plans to build in the near-future.

The backstory:

In May, GM said it was spending $888 million at its engine plant in Buffalo.

The Tonawanda Propulsion plant will build the engines used in pickup trucks and SUVs. A news release from GM called it the “largest single investment” that it has ever made for building engines.

The Source: News releases from General Motors were used to report this story. 

 

Search

RECENT PRESS RELEASES