❓WHAT HAPPENED: General Motors (GM), in a letter to shareholders, said it is now in the process of shifting billions of dollars of production back into the U.S. in response to President Donald J. Trump’s tariff policies.
👤WHO WAS INVOLVED: GM CEO Mary Barra, President Trump, Mexico, and U.S. autoworkers.
📍WHEN & WHERE: The production shift was announced in a second-quarter earnings letter to GM shareholders on July 22, 2025.
💬KEY QUOTE: “In addition to our strong underlying operating performance, we are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape.” — GM CEO Mary Barra
🎯IMPACT: GM is now projecting it will produce more than two million of its vehicles in the U.S. each year.
The largest automaker in the United States says it is scaling back its manufacturing footprint abroad, especially in Mexico, and instead investing billions in its America-based facilities in response to President Donald J. Trump’s imposition of tariffs on foreign imports, including automobiles. General Motors (GM) CEO Mary Barra, in a letter to shareholders, said the company is in the process of moving billions of dollars of production back into the U.S., as well as retrofitting some of its American manufacturing facilities to produce more internal combustion engine autos instead of electric vehicles.
Barra emphasized that the auto giant will likely undertake additional measures beyond an already planned $4 billion U.S. production investment to “greatly reduce our tariff exposure.” The letter continues: “In addition to our strong underlying operating performance, we are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape.”
Notably, the GM CEO announced that the company is now projecting to produce more than two million of its vehicles in the U.S. each year. As part of achieving this objective, GM has begun pausing truck production at at least one of its plants in Mexico, with assembly being moved to Michigan instead. Additionally, the company says it is investing nearly $1 billion in a powertrain facility in Buffalo, New York, focusing on producing gas-powered V8 engines for its truck and sport utility vehicle lines.
GM’s Chief Financial Officer, Paul Jacobson, echoed Barra, stating: “Over time, we remain confident that our total tariff expense will come down as bilateral trade deals emerge and our sourcing and production adjustments are implemented.” Notably, while GM saw its revenue slide in the second quarter, the automaker contends this was primarily due to flagging electric vehicle sales and a recall involving a software problem with its electric vehicles as well. The automaker’s total revenue still beat Wall Street expectations.
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