GM will invest $4 billion in U.S. manufacturing of gas and electric vehicles

General Motors announced Tuesday a $4 billion investment in U.S. production of both gas and electric vehicles as it grapples with tariffs.

The Detroit-based auto giant said the money will make it possible to assemble more than 2 million cars, SUVs, and trucks annually in the U.S. GM will expand plants in Michigan, Tennessee, and Kansas to make its plans a reality.

Cars that will be assembled thanks to the investment include: Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV pickup and SUV, gas-powered Chevrolet Equinox, Chevrolet BlazeCadillac LYRIQ and VISTIQ EVs, and the Cadillac XT5.

U.S. assembly will begin in 2027, GM said.

The Chevrolet Blazer and Chevrolet Equinox are currently assembled in Mexico and face 25% tariffs implemented by President Donald Trump.

“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” GM CEO Mary Barra said in a statement. “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.”

The company said this investment is in addition to the recent announcement that it will pour $888 million into the Tonawanda Propulsion plant near Buffalo, New York to help build V-8 engines.

While the company didn't reference Trump's tariffs, the announcement comes as auto companies have been grappling with trade policies that will either drastically cut into their bottom line or cause them to raise prices.

Barra warned investors in a letter this spring that tariffs could cost the company as much as $5 billion this year. Barra has tried to walk a tightrope with the president, being both realistic about the policies' impact and not getting on Trump's bad side. In the same letter, she wrote she is “grateful to President Trump for his support of the U.S. automotive industry.”