Dive Brief:
- General Motors is investing $275 million into its Spring Hill Manufacturing Plant in Tennessee to support the automaker’s 2.7L inline 4-cylinder engine program for full-size and midsize trucks and for the launch of a future internal-combustion-engine Cadillac model, the automaker announced in a June 24 press release.
- Roughly $150 million of the amount will support the future Cadillac model, which will bring the number of vehicles produced at the plant to five.
- The remaining $125M investment will be used to refurbish equipment, extend the life of GM’s 2.7L engine program and support ongoing production of an engine for Chevrolet and GMC trucks, including the Colorado, Canyon, Silverado and Sierra, per the release.
Dive Insight:
The investment in Tennessee is part of GM’s ongoing efforts to boost domestic manufacturing. The company said it will spend approximately $9 billion across its U.S. manufacturing footprint this year alone, as well as another $7 billion on U.S. research and development.
In May 2025, GM announced plans to invest $888 million in its Tonawanda Propulsion plant in New York to support production of the next generation of its V8 gas engine for full-size trucks and SUVs. The engines feature combustion and thermal management improvements designed to boost performance and improve fuel economy, according to GM.
Last week, GM unveiled the next-generation 2027 Silverado 1500 pickup that features the automaker’s new next-generation 5.7L and 6.6L V8 gas engines.
The Spring Hill plant is designed to be flexible based on demand. Vehicles currently manufactured in Tennessee include the ICE-powered Cadillac XT5, XT6 and the fully electric Lyriq and Vistiq SUVs.
Next year, GM plans to begin building the Chevy Blazer at Spring Hill. Both the ICE Blazer and Blazer EV are currently manufactured at GM’s Ramos Arizpe Assembly Plant in Coahuila, Mexico.
GM originally had planned to transition Cadillac into an EV-only luxury brand by 2030, but market uncertainties and declining EV sales led the automaker to postpone those plans. GM instead will offer a mix of both ICE and fully electric Cadillac models to meet consumer demand.
It’s a strategy similar to that of Volkswagen for its plant in Chattanooga, Tennessee. In April, VW announced it was ending production of the electric ID.4 SUV in Chattanooga. The company said the plant will focus more on higher-volume models that support sustained growth in North America, including the second‑generation, gas-powered Atlas SUV that will go into production this summer and arrive at U.S. dealers in the fall as a 2027 model.
