New GM Plant Gives 'A Lot of Hope' For Michigan, Says Rep. McClain

Michigan Representative Lisa McClain, chair of the House Republican Conference, said GM's decision to move more production back to the US will provide jobs and "a lot of hope" for her district, crediting President Trump's tariff policy. Rep. McClain is also watching for changes to the Trump tax bill, warning that changes to the SALT cap could make it difficult for the bill to pass back through the house.

General Motors Co. plans to invest $4 billion in its US plants over the next two years in response to President Donald Trump’s tariffs in a move that reduces production in Mexico while boosting domestic output of some of its some of its top-selling gas-powered vehicles.

The spending will expand factories in Michigan, Kansas and Tennessee. The moves will boost annual US production capacity by 300,000 vehicles, GM Chief Financial Officer Paul Jacobson said at a Deutsche Bank conference on Wednesday

Assembly of several top-selling models, including its very profitable Chevrolet Silverado and GMC Sierra pickup trucks and the Chevrolet Equinox SUV, will move to factories in the US from Mexico. GM plans to add between 3,000 and 4,000 US jobs when all production is in place, a spokesman said.

The shift marks one of the biggest pivots yet by an automaker in response to Trump’s tariffs that have upended the economics of automobile manufacturing. It’s also a recognition by Chief Executive Officer Mary Barra that Trump’s trade war is not a passing phase.

The investments will allow GM to produce more than 2 million vehicles in the US each year. GM will continue making vehicles affected by the announcement in Mexico, but at lower volumes, the person said.

In a separate interview with Bloomberg TV, Jacobson said the automaker has thus far avoided price increases due to tariffs and hopes to maintain that position.

“We don’t want to raise prices because of tariffs and then when tariffs come down expect that prices are going to come back down,” Jacobson said. “We want to be more consistent with our customer base.”

Since Trump’s first term in office, he has railed against companies for making cars in Mexico only to be imported for sale in the US. GM last year was the largest importer of finished vehicles into the US, and it’s seeking to mitigate an estimated $5 billion exposure to Trump’s tariffs.

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