
General Motors (48.93, 1.00, 2.09%) announced on Tuesday that it plans to invest $4 billion in three assembly plants in the United States, including relocating or increasing the production of two car models currently manufactured in Mexico to its U.S. facilities.
The announcement comes as there are few signs of progress in trade negotiations between the U.S. Trump administration and Mexican leaders. Earlier this year, Trump announced a 25% tariff on imported cars and a 25% tariff on many auto parts imported into the United States.
General Motors said the investment will expand the assembly of the gasoline-powered Chevrolet Blazer and Chevrolet Equinox, currently produced in Mexico, to two additional U.S. plants. It will also transform a large idle factory in Michigan into a facility to produce gasoline-powered SUVs and trucks by 2027, which was originally planned to manufacture all-electric trucks.
General Motors declined to discuss the future of the Ramos Arizpe (121.88, 0.40, 0.33%) plant in Mexico, where these models are currently produced. According to a source familiar with the plan, Blazer production will be fully moved from Mexico to the U.S., while Equinox production is expected to supplement the Mexican plant, which will also produce vehicles for other markets.
According to General Motors, this new investment will extend through 2027, enabling the company to assemble over 2 million vehicles annually in the United States.