General Motors Company GM plans to make an investment of around $4 billion across three U.S. assembly plants. The plans include shifting or expanding the production of two vehicles currently manufactured in Mexico. The move comes amid slow progress in trade negotiations between the Trump administration and Mexico’s officials. Earlier this year, President Trump imposed 25% tariffs on vehicles and many auto parts imported into the United States.
GM revealed it will begin producing the gas-powered Chevrolet Blazer and Equinox, both presently made in Mexico, at two U.S. plants. The company will repurpose an idled Michigan plant, previously set to produce electric trucks, to build gas-powered SUVs and trucks starting in 2027. GM did not comment on the future of its Ramos Arizpe plant in Mexico. Per a source familiar with the plans, Blazer production would fully relocate to the United States, while Equinox output in the country will supplement, not replace, production in Mexico, which will continue to serve other markets.
The investment may be viewed as a victory for President Trump’s auto tariff policy. President Trump proposed partial tariff rebates for companies assembling vehicles in the United States, offering temporary financial relief.
This investment, running through 2027, will expand GM’s U.S. production capacity to more than two million vehicles annually. By early 2027, the Orion plant in Michigan will start building gas-powered SUVs and pickups. GM’s Factory ZERO in Detroit will focus exclusively on electric vehicles like the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ and GMC Hummer EV.
Fairfax Assembly in Kansas will begin building the gas-powered Equinox by mid-2027 and the 2027 Chevrolet Bolt EV by year-end. Additional investment is planned at Fairfax for GM’s next-gen affordable EVs. Spring Hill Assembly in Tennessee will add production of the gas-powered Blazer in 2027.
GM maintained its 2025 capital spending forecast of $10–$11 billion and anticipates annual spending of $10–$12 billion through 2027. The company has carefully evaluated its North America production plans in light of tariffs. Instead of making a rash decision, GM is taking a wait-and-see approach till it gets clarity on the regulatory environment. Per GM’s CFO Paul Jacobson, while initial market reactions to tariffs were negative, potential international trade agreements and cost-offsetting strategies offer some reassurance.
GM’s Zacks Rank & Key Picks
General Motors carries a Zacks Rank #5 (Strong Sell) at present.
Some better-ranked stocks in the auto space are CarGurus, Inc. CARG, Strattec Security Corporation STRT and Michelin MGDDY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CARG’s 2025 sales and earnings implies year-over-year growth of 4.96% and 25%, respectively. EPS estimates for 2025 and 2026 have improved 4 cents and 5 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MGDDY’s 2025 sales and earnings implies year-over-year growth of 0.43% and 37.76%, respectively. EPS estimates for 2025 and 2026 have improved by a penny and 4 cents, respectively, in the past 30 days.
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General Motors Company (GM): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Michelin (MGDDY): Free Stock Analysis Report CarGurus, Inc. (CARG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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