Dive Brief:
- General Motors said it plans to invest a combined $830 million across three U.S. automotive factories, bringing its total spend in U.S. manufacturing to $6 billion over the past year.
- The installments will expand 10-speed transmission production at GM’s major facilities in Romulus, Michigan and Toledo, Ohio, as well as V-8 engine block and head capacity at its metal casting plant in Saginaw, Michigan, according to a news release.
- Some of the expansions are already underway to support the launch of GM’s new model trucks and SUVs as the company looks to pivot away from electric vehicle production due to tax credit changes.
Dive Insight:
As part of the recent commitments, GM said it plans to invest $300 million to add more transmission capacity for its full-size trucks and SUVs at Romulus Propulsion Systems. GM initially invested $300 million last year to support this work. The facility employs about 1,000 people.
GM also plans to spend an additional $40 million to increase transmission capacity for its light-duty trucks at Toledo Propulsion Systems. This would build on a $40 million commitment previously made in March. The location employs about 1,650 people.
GM last month said it plans to spend more than $150 million to expand the production of engine blocks and heads used in full-size pickup trucks and Corvettes at its Saginaw Metal Casting Operations, where 350 employees work.
“These investments mean greater job security for our members and stability for these facilities,” Mike Booth, vice president of the United Autoworkers’ union and director of its GM department, said in a statement.
The maker of vehicle brands such as Chevrolet, Equinox and GMC has been shifting more of its production to the United States to offset the Trump administration’s tariffs on vehicles imported from Mexico and other countries.
GM has also committed to invest $4 billion retooling its facilities in Orion Township, Michigan; Kansas City, Kansas; and Spring Hill, Tennessee; to meet growing demand for gas-powered SUVs and light-duty pickup trucks by early next year. Its most recent investments aim to further support domestic production of these vehicles.
GM reported $43.6 billion in revenue during the first quarter, a less than 1% decline from last year. It made a quarterly profit of $2.6 billion.
GM is bracing for tariff costs between $2.5 billion and $3.5 billion for the year, but is expecting $500 million in refunds for charges it paid last year on Trump administration levies ruled unlawful by the Supreme Court.
