mobile-menu-icon
GM Authority

GM May Move Some Truck Production From Mexico To U.S.

GM is considering a plan of action in response to tariffs the Trump administration plans to impose on Mexico and Canada, saying it may shift some truck production from the Latin country to the United States. For now, the proposed tariffs won’t go into effect before March for both Canadian and Mexican imported goods, following some last-minute negotiations.

View of the Chevy Silverado production line at the GM plant.

The automaker has officially confirmed that it has been preparing to deal with the possible consequences of the tariffs that the new Donald Trump administration has planned for Mexico and Canada, anticipating that if the measure is implemented, it could move part of the truck production from Mexico to the United States. Although GM’s top leadership said it is confident that both countries can reach a long-term agreement, it has taken precautions.

“We’ve been looking at multiple scenarios (as a precautionary measure against potential tariffs), but from a Mexico perspective, we build trucks in Mexico, Canada and the U.S. So we have the capacity in the U.S. to ship some of that production,” said the GM CEO, Mary Barra, during the call with analysts to discuss 2024 financial results.

Notably, GM’s Mexico subsidiary is the largest vehicle manufacturer in the Latin American country and exports about 80 percent of local production to the United States. For this reason, the trade tariffs announced by the Trump administration on the country would have a severe negative impact on Mexican operations and on the financial results of the entire company, whose main profit center is concentrated in North America.

If the threat of tariffs materializes, one of the measures GM could take is to move part of the production of full-size Chevy Silverado and GMC Sierra trucks from the GM Silao plant in Mexico to the GM Fort Wayne plant in Indiana. According to Expansion, in 2024 the Mexican plant produced 362,929 trucks, which were sent mainly to the American market. Units are also exported to countries in the Middle East and South America.

“We also sell trucks globally, so we can look at where international markets are sourcing from. There are strategies we can implement from that perspective to minimize the impact if there are tariffs, whether it’s in Canada or Mexico,” Barra added.

Deivis is an engineer with a passion for cars and the global auto business. He is constantly investigating about GM's future products.

Subscribe to GM Authority

For around-the-clock GM news coverage

We'll send you one email per day with the latest GM news. It's totally free.

Comments

  1. Well, would you look at that.

    Reply
    1. Should have been built here all along!

      Reply
  2. Move the batteries trucks over there.

    Reply
  3. Reopen Orion to build the ICE trucks that sell there and give up on the wild dream that the plant will instead be needed to build 400,000 EV pickups. GM already has Hamtramck building EV trucks (Silverado EV, Sierra EV, Escalade IQ, and Hummer EV) and I believe their annual capacity is 350,000 units which should be sufficient for the foreseeable future. There apparently just isn’t the market for enough of these $100,000 plus vehicles to support both Hamtramck and Orion. The latter plant is sitting idle waiting for demand to increase but it could be years, if ever, before the factory is needed for more of those vehicles. GM could instead utilize it now for ICE trucks that sell well and, importantly, generate significant profits.

    Reply
  4. Well if the UAW wouldn’t have been so unreasonable to deal with they wouldn’t have even been producing trucks in Mexico.

    Reply
  5. Yeah. Look how easy that was. Old Mary quite contrary could have done that herself without trumps help. But no. Had to be forced. I hope Fort Wayne employees are greatful

    Reply
    1. Ft Wayne cannot handle any more production .

      Reply
      1. How do you figure??? They’re already at a derated capacity. Bring em!

        Reply
  6. The U.S. is where all GM vehicles should be made.

    Reply
    1. Perhaps but there’s a free trade agreement that’s supposed to be honoured. Nobody is going to want to do business in the U.S anymore with this bs going on, threatening every single trade partner.

      Reply
      1. Guess we’ll have to do business with ourselves….oh well, there goes the trade deficit. Wooops

        Reply
        1. jg, I think that’s your problem.
          You do business with yourself too much.

          Reply
      2. Every country wants to do business with the US, we have the biggest market, and the biggest economy in the world.

        Reply
    2. Trump wanting to bring jobs to Usa but the big question is. Are Americans going to the Job? I highly doubt it? Ppl now a days in America is very entitled you want to build in America I doubt you’ll be able to afford it.

      Reply
      1. all the future ex government employees will need new jobs and maybe stop giving out so much free money, then people will HAVE to work

        Reply
  7. Best news i have heard from GM in a while thank Mr. President American trucks should be built in America with a Union Bug on the inside of driver door it took me a while to find my 2024 GMC Sierra that was built in America wont buy an imported truck.

    Reply
    1. Both Canada and Mexico are in America, so the vehicles built in those nations are American.

      Question: What do you call a U.S. native? America is a continent, not a single nation. And if you ask, I am a born New Yorker, just what Trump was before he fled to Florida.

      Reply
      1. American vehicles are built in the United States of America, they’re not Canadian or Mexican, got it?

        Reply
        1. So is the Honda built in Ohio an American vehicle?

          Reply
          1. Absolutely it is !

            Reply
        2. Wanna bet? Best if you did a little more research Mr Pickle.

          Reply
        3. Free trade placed the big 3 in Canada because we buy so many, pull out we won’t buy any and GM won’t have to worry about keeping up with production. GOT IT

          Reply
        4. Says it the guy that drives a Kia Forte 🤣🤣🤣

          Reply
      2. GM Owner – NO ONE cares where you were born.

        Reply
      3. It’s called context.

        Bless your heart.

        Reply
  8. Bootlicking corporate cowards!

    Reply
  9. Tariff is a good thing if it brings home the manufacturing. Just wish it would happen without the government having to get mixed up in it.

    Reply
    1. They should start with a Survey first. You are bringing all this company’s back hoping the american will apply for the entry level Job offered and no one will apply because is not good enough. Generations nowadays are very entitled and wants to start right from the top.

      Reply
  10. American car’s and trucks should all be built in America 🇺🇸 put Americans back to work in our Country not in Mexico or Canada!

    Reply
    1. That’s fine we don’t have to buy them, that’s solve your production issues, you won’t be adding any jobs

      Reply
  11. Hmmm, just do not remember Mexico bailing GM out of bankruptcy.

    Reply
  12. Yes. Yes. Yes.
    BRING IT ALL BACK.
    BUILD VEHICLES FOR AMERICANS IN AMERICA.
    South Korea, Mexico, Canada, China, bring it home where it belongs!

    Reply
  13. This would have never happened if American consumers would have left the trucks built in Mexico and Canada on the lot. It is simple to know where it is built it is right on the sticker. Also if the VIN number starts with 3 built in Mexico and if it is a 2 built in Canada. GM was warned about building pickup trucks outside the USA but they never listened. They wanted the cheaper labor and inferior workmanship. I have never in 45 years bought a vehicle from GM that did not have the Vin number start with 1 which means proudly built in the USA!

    Reply
    1. Inferior workmanship? You do know the same stringent standards apply no matter where the vehicle is built right? Heck, some of the surveys I have seen showed the Mexico built units were less problematic than the US made ones. If it keeps the price down, I am all for vehicles made outside of the US, the greedy UAW (and you are one of them) has driven up the cost too much.

      Reply
      1. Why don’t you move to the country you want to support then.

        Reply
    2. Couldn’t agree more brother. Retired Local #3 I.B.E.W. Member if they aren’t UNION built in America leave em on the lot.

      Reply
    3. So does that mean all the people with 6.2L in their Yukons and Escalades can blame the UAW for inferior workmanship? What about those awesome 8-speed transmissions from a few years back? I’ve had a half-ton Chevy truck from each of the three plants….there is not a difference in quality.

      Reply
  14. Canadians love American cars and trucks. But this back stabbing tariff scheme is insulting and will lead to low sales in Canada.

    Reply
  15. Canada invented the term outsourcing in America. They provide healthcare which saves The Car Companies billions. In Mexico whatever healthcare they have doesn’t cost anything compared to the USA. BTW it was the greedy unions that destroyed the American automobile industry. Every year that involved renegotiation, which is always held along side elections, and workers skipping a bolt and generally sabotaging cars bought by fellow Americans. Remember us, your neighbors as you so loudly put it.

    Reply
    1. Florida Rob,
      You obviously have never worked in a GM – UAW plant.
      I hope you never do.
      You’re assertion that UAW employees sabotage products that they make, jeopardizing their own livelihood, and the livelihood of others in the GM – UAW family, is moronical add best.

      Reply
      1. That was supposed to say, moronical at best.
        Not, moronical add best.
        My proofreading isn’t what it used to be. It is often times hard to proofread your own stuff.

        Reply
  16. How about See The USA In Your Chevrolet made in the USA

    Reply
  17. Well, what a concept, build American trucks in America, who would have thought of that. Definitely not Mary Contrary!

    Reply

Leave a comment

Cancel