General Motors said Tuesday it will invest approximately $4 billion over the next two years at facilities in Michigan, Kansas, and Tennessee to expand production of gasoline-powered vehicles, reflecting a recalibration of its strategy amid softening electric vehicle (EV) demand.
The automaker announced plans to launch production of gas-powered full-size SUVs and light-duty pickups at its Orion Assembly plant in Michigan in early 2027. The facility had previously been designated to produce electric trucks starting next year. GM’s shift raises questions about its earlier pledge to phase out gas-powered vehicles by 2035.
The investment was welcomed by the White House. “GM’s investment announcement builds on trillions of dollars in other historic investment commitments to Make in America,” said White House spokesman Kush Desai. U.S. President Donald Trump is expected to sign legislation this week to revoke California’s 2035 zero-emission vehicle mandate. Sources told Reuters that GM CEO Mary Barra recently met with Trump to discuss investment plans and regulatory relief.
In addition to Orion, GM’s Fairfax Assembly plant in Kansas will begin production of both the electric Chevrolet Bolt and gas-powered Chevrolet Equinox by mid-2027. GM also announced plans to manufacture the gas-powered Chevy Blazer at its Spring Hill, Tennessee plant starting in 2027, alongside EV and gas-powered Cadillac models. The company reiterated its ongoing commitment to EVs, saying it anticipates “new future investments in Fairfax for GM’s next generation of affordable EVs.” Despite the U.S. ramp-up, GM confirmed that production of the Equinox and Blazer will continue in Mexico to serve non-North American markets. Mexico’s economy minister Marcelo Ebrard said there are no anticipated closures or layoffs at GM’s Mexican facilities.
GM expects its annual capital expenditures to remain between $10 billion and $12 billion through 2027, reflecting a strategic focus on U.S. investment, critical vehicle programs, and operational efficiencies.