General Motors will invest $4 billion in three assembly plants located in the United States.
The tariffs imposed by Donald Trump on Mexico are a part of this.
General Motors has plans to invest in three American assembly facilities, and to move or increase production of two Mexican vehicles at U.S. factories.
Detroit announced its plans on Tuesday as the Trump administration has made little progress in the trade negotiations with Mexican leaders. In January, President Donald Trump imposed 25% tariffs for imported vehicles as well as 25% on auto parts imported to the U.S.
GM announced that the investment would add assembly of gas-powered Chevrolet Blazers and Chevrolet Equinoxes, which are currently manufactured in Mexico, to two other U.S. plants and convert a large idled Michigan plant — formerly intended to build all electric trucks — into gas-powered SUVs.
GM refused to comment on the future of Ramos Arizpe, the plant in Mexico that produces vehicles at the moment. Sources familiar with plans say that the Blazer production will be moved to the U.S., and the Equinox production will be added to the Mexican facility, which will also produce for other markets.
Mary Barra, the CEO of General Motors, met Donald Trump in March.
Reuters reported that in March, GM CEO Mary Barra had a meeting with U.S. president Donald Trump. They discussed investment plans, and Barra told Trump that GM needed to be relieved of California emission and federal fuel efficiency requirements to expand U.S. manufacturing. Trump will sign legislation Thursday that will rescind California’s 2035 zero emission vehicle regulations.
Kush Desai, White House spokesman, said that “no president has shown a greater interest in reviving America’s once-great automobile industry than President Trump. GM’s announcement of investment builds on trillions in other historic commitments for Make in America.”
Trump’s tariffs have worked.
