GM to invest $4bn in three US facilities as it ramps up petrol-powered vehicles

General Motors said on Tuesday it is planning to invest about $4bn (R70.77bn) over the next two years at three US facilities in Michigan, Kansas, and Tennessee as it moves to boost production of petrol-powered vehicles amid slowing EV demand.

The company said it will begin production of petrol-powered full-size SUVs and light-duty pickup trucks at its assembly plant in Orion Township, Michigan, in early 2027. Orion Assembly was previously slated to build electric trucks starting next year.

The move calls into question GM's plan to end the production of petrol-powered cars and trucks by 2035. It was welcomed by the White House, which has imposed significant tariffs on imported vehicles to pressure carmakers to move more production to the US.

In March, GM CEO Mary Barra met with US President Donald Trump to talk about investment plans and told the president GM needed relief from California emissions and federal fuel economy requirements to expand US production, sources told Reuters. Trump is set to sign legislation on Thursday to rescind California's 2035 zero-emission vehicle rules.

"No president has taken a stronger interest in reviving America’s once-great car industry than President Trump, and GM’s investment announcement builds on trillions of dollars in other historic investment commitments to make in America," said White House spokesperson Kush Desai said.

GM's Fairfax assembly plant in Kansas is set to start building the all-electric Chevrolet Bolt by the end of this year, and GM said it will also build the petrol-powered Chevrolet Equinox starting in mid-2027.

In a statement the largest US carmaker said it expects to make "new future investments in Fairfax for GM’s next generation of affordable EVs".

GM last month said it is also investing $888m (R15.70bn) at a New York propulsion plant to increase petrol engine production.

At its Spring Hill, Tennessee, plant, GM will add production of the petrol-powered Chevy Blazer beginning in 2027. It will be built alongside the electric Cadillac Lyriq and Vistiq SUVs and the petrol-powered Cadillac XT5.

The petrol-powered Chevrolet Equinox and Blazer are  produced in Mexico. The Equinox will continue to be built in Mexico once production starts at US facilities to supply markets outside of North America.

Mexico's economy minister Marcelo Ebrard said in a social media post he talked to GM and said there is no expectation of any plant closure or layoffs at the carmaker's Mexican plants.

GM said it expects annual capital spending will be between $10bn (R176.86bn) and $12bn (R212.23bn) through to 2027, reflecting increased US investment, prioritisation of key programmes and efficiency offsets.