General Motors said on Tuesday that it would invest $4 billion into three US plants to boost production of gas and electric vehicles, as a 25% tariff on imported cars by President Donald Trump threatens the bottom lines of automakers that sell in the United States.
It was not immediately clear how much of the $4 billion had already been announced or committed.
The automaker’s plan reflects the rush by manufacturers to invest in the United States to sidestep Trump’s tariffs – or at least to make splashy, eye-catching announcements that could win them a reprieve.
GM CEO Mary Barra previously told CNN that the 25% tariff on cars (and on imported auto parts) would cost the company between $4 billion and $5 billion in 2025.
Trump has levied tariffs on several sectors, including a 50% tariff on steel and aluminum that also could hurt automakers, as well as 10% tariffs on US trading partners generally. But he’s also paused, increased, walked back and modified many of his tariffs, leading to confusion among investors, importers and businesses that are trying to figure out how to stay afloat.
The GM investment will go into three locations, the company said in a release: Orion Assembly in Orion Township, Michigan; Fairfax Assembly in Kansas City, Kansas; and Spring Hill Manufacturing in Spring Hill, Tennessee.
“Today’s announcement demonstrates our ongoing commitment to build vehicles in the US and to support American jobs,” Barra said in GM’s statement.
GM was the first major company to estimate a dollar amount for its costs from Trump’s sweeping tariffs.
Many other companies have walked back earnings forecasts because of the ensuing economic uncertainty or have said they will likely raise prices at some point this year. Ford, for example, said it expects to raise its US car prices as much as 1.5% in the second half of 2025 due to the import levies.
While GM is not the dominant global auto player it once was, it is still the largest American automaker, with 2.7 million cars and trucks sold in the US last year.
CNN’s Nathaniel Meyersohn contributed reporting.
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