Responding to Trump's Tariff Policy to Protect the Auto Industry
$4 Billion Investment Over the Next Two Years
Expansion of Electric and Internal Combustion Vehicle Production
General Motors (GM) announced on the 10th (local time) that it will invest a total of 4 billion dollars (approximately 5.5 trillion won) over the next two years to increase production of electric and internal combustion engine vehicles in the United States. GM's investment plan. GM
General Motors (GM), the largest automaker in the United States, has announced plans to invest more than 5 trillion won in new funding to expand its vehicle production base in the U.S., responding to President Donald Trump's tariff policy aimed at protecting the American automotive industry.
On the 10th (local time), GM issued a press release stating that it will invest a total of 4 billion dollars (approximately 5.5 trillion won) over the next two years to increase production of electric and internal combustion engine vehicles in the United States.
With this new investment, GM intends to increase vehicle production at its factories in Michigan, Kansas, and Tennessee. Through these efforts, GM expects to produce more than 2 million vehicles annually in the United States.
According to U.S. business news outlet CNBC, which cited sources familiar with the matter, the new investment will result in all production of the Chevrolet Blazer, currently manufactured in Mexico, being shifted to the United States. Additionally, while the Chevrolet Equinox will continue to be produced in Mexico, production will also be added at a U.S. plant.
Chief Executive Officer Mary Barra stated, "We believe the future of transportation will be led by American innovation and manufacturing expertise," adding, "Today's announcement demonstrates our ongoing commitment to building vehicles in the U.S. and supporting American jobs."
This announcement from GM comes as the Trump administration has imposed a 25% tariff on foreign-made cars and auto parts in an effort to bring automotive manufacturing facilities back to the United States. Since April, the Trump administration has imposed a 25% tariff on imported cars, and as of last month, expanded the tariffs to include auto parts.
Additionally, GM announced plans to spend 10 to 12 billion dollars in capital expenditures annually through 2027. Until 2025, the company will maintain annual capital expenditures at 10 to 11 billion dollars as previously announced, but plans to raise the upper limit to 12 billion dollars by 2027. Capital expenditures refer to long-term investments made by the company for future growth, rather than simple expenses.
GM also stated that it will pursue capital expenditures with a focus on increasing efficiency and prioritizing key projects. This indicates an intention to reduce unnecessary business activities and concentrate on areas with higher profitability and technological strength.
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