GM is preparing to adjust its U.S. manufacturing volume in response to new auto tariffs implemented by the Trump administration, all without building new U.S. factories.
During a recent interview with CNBC, GM CEO Mary Barra detailed the automaker’s strategy to increase output at existing U.S. plants as part of a broader effort to mitigate the financial impact of the tariffs, which are expected to cost the company between $4 billion and $5 billion.
GM CEO Mary barra in 2024
During the interview, Barra explained that General Motors’ recently delayed 2025 financial guidance was due to the timing of the White House’s official tariff announcement. Barra states that General Motors has been coordinating with administration officials since late 2024, highlighting the complexities of global auto supply chains and how intertwined they are with domestic manufacturing.
To blunt the impact of the new tariffs, General Motors is ramping up production at several domestic plants, including the Fort Wayne Assembly facility in Indiana, where it plans to build an additional 50,000 trucks annually in the U.S. Barra added that over 80 percent of GM’s U.S.-built vehicles already meet USMCA compliance, thanks in part to a 27 percent increase in U.S.-sourced parts since 2019.
While Barra declined to say whether General Motors would relocate production from Mexico, she affirmed the company’s focus on maximizing capacity at its 50-plus U.S. plants. Several GM facilities in the U.S. are well below production capacity at the moment, including the automaker’s Factory Zero plant and Lansing Grand River plant. Other facilities, such as Orion and Fairfax, are currently idled. Check out our previous analysis of how increased U.S. production could affect General Motors in light of the new tariffs.
Barra also addressed vehicle pricing. Despite the expected increase in operational costs, the automaker says it will assume “a pricing environment similar to what it is today,” and will stay competitive by avoiding steep discounts, particularly in the crowded electric vehicle market.
Check out the full interview right here:
Comments
Good Job Trump!!!! I can’t wait to see all the Soy Beta Trump Haters Comments.
Don’t worry. One of them will appear to just insult you without providing any backup argument. No amount of positive news will get the tribalism out of them.
Trump would not even make a credible witness in a traffic court at a trial for a petty ticket. A prosecutor would introduce a certified record of felony convictions and his statements impeached (diminished) due to dishonesty.
Miles Monroe – Do you get your news from The View? Do you have a poster of Ana Navarro in the basement where you live of your mom’s house? Be honest.
Well, if you insist. It’s a poster of Hillary like the one I had of Farah Fawcet in 1978.
OH NO he has to go trumpzilla. OH NO there goes the world as we know it Trumpzilla.
OH NO he has to go TRumpzila.
Can’t wait to buy poorly assembled US union made vehicles, just like in the 60’s, 70’s, 80’s, 90’s,2000 +.
Don’t think it’s the workers. It’s management and quality of the parts and products. The workers will simply assemble what they have been provided. My ‘97 Grand Am had the 2.2 liter. The ignition coil was located at the bottom of the block. The car stalled in a viaduct where the Hondas and Toyotas made it through fine. I buy VW and Hondas. Never looked back
Why do people judge a car company with a product made 30+ years ago. I have owned several Toyota’s with horrendous problems. I dont judge the products they make today. A brand changes over time. I feel and have seen now GM makes far better products than Toyota. Toyoda maybe tried in the 1980s to get a foot hold in American markets. That is no longer the case.
simple to explain “‘OUT TO LUNCH”
You know that factories in Canada Mexico and Korea are also unionized right?
I’ll just be glad when we’re no longer buying bearings from ¢hin@
Ahhh . You are a stooge who works for the other auto companies???? HMMMM> Sounds like it . More misinformation. Thank You COMRAD.
I can’t wait to hear you complain endlessly vehicles are too expensive. Poor thing, can’t afford a new Denali.
Right on. I’m waiting for a Chevette Scooter with back seat delete.
Building more expensive full-size pickups isn’t the smartest thing to be doing if the economy collapses. GM will have its hands full of them as repos, and that’s bad enough.
The trucks are relatively cheap to make and have insane profit margins. If the economy does go south, they can cancel all EV’s put 20K on the hood of a truck and move enough to keep the lights on.
Beachy. Spend less time at the BEACH. And read newspapers. Car builders are building full _sized “PICKEMUP TRUCKS.” Can not build them fast enough. You on a BEACH on MARS. NO No I do not mean da “CANDY BAR”.
Politics aside, why were those plants idling in the first place? Tinkering with EVs and then leaving capacity on the table isn’t smart in any economy, let alone this one.
GM has weak leadership in so many areas. There are about 5 plants GM runs balls to the wall 24/7 with no time for preventative maintenance, and the rest are run from 0 to 30 percent capacity. GM could probably use some overflow production for their full size SUVs
Tigger. Why don*t you take some MAJOR management courses . Get a job at a AUTO plant as a PLANT MANAGER ? Sounds like you walk around wearing a “PLANT MANAGER PLANT HAT” What are you doing running around to all these plants + spying on everyone. ? Does you hat have a “MARIJAWNA ( SEVEN LEAF PLANT) PLANT” on it???
Looks like you are the one smoking rope. BTW, a plant manager has nothing to do with underutilized capacity. They just manage the plant with the assigned products.
Once DOT head Sean Duffy scraps CAFE completely we can hopefully get a 7th gen V8 Camaro while we’re at it
For what? To sell 15K-20K tops annually?
You actually think CAFE was the culprit?
In the past 20 years, how many sport cars did you count that were in the annual top 20 best selling vehicles? There’s your REAL culprit as to the demise of the Camaro.
I’d Love for future Buicks including the current Envista, Encore GX and Envision to be produced at one of these factories. I have a great feeling that something like this will happen for Buick. Hopefully GM can get their act together and start moving production from China, Korea and Mexico to the United States. If All of the 3 current Buicks Envista, Encore GX and Envision besides the Enclave which is assembled in Lansing were made here in the USA with All USA Engines, Transmissions and parts and components I definitely would be interested in buying one and wouldn’t mind paying more for a Buick made in the USA. Hopefully GM definitely finds a way to keep Buick alive in the North American market and the brand doesn’t disappear from North America or worse ends up becoming the next Oldsmobile or Pontiac. Buick sales are up with the Envista, Encore GX and Envision. They’re Great looking products and offer Great value for a Premium Entry-Level Brand. Buick is the most reliable and trouble free GM brand and Always ranks highly in the J.D. Power and Associates New vehicle reliability and dependably rankings.
Buick is a Premium Entry-Level Luxury Brand
Me too! Move them to Lansing Grand River and all Buicks would be made in Lansing.
I’d Love that idea 100%. Hope it becomes a reality. I Love Buick and Cadillac and I Always have and Always will including Lincoln. I would definitely Love to see Buick and Cadillac get Sedan’s Coupe’s and Convertible’s again in the near future too. Cadillac definitely needs a proper Audi A8, BMW 7 Series, Maserati Quattroporte, Mercedes-Benz S-Class and Porsche Panamera rival in the F-Segment which is Full-Size Luxury Sedan in Regular and Long-Wheelbase and be priced in the same price category as those models but priced way below the $340K+ Celestiq that competes with Bentley, Maybach and Rolls Royce. A Two Seat Coupe/Roaster off the current Corvette C8 platform and a Mid-Size and Large Coupe/Convertible to rival the British, German and Italian car brands and as well as an Ultra-Luxury Bentley, Maybach and Rolls Royce Coupe/Convertible rival would be Great too. Buick should get another Park Avenue to compete with the Genesis G90 and Lexus LS and a New Mid-Size Regal using the existing CT5 platform to compete with the Genesis G80 and Lexus ES Mid-Size offerings. Buick also needs a New Riviera Coupe/Convertible and bring back the Regatta as a Two Seat Coupe/Convertible. Buicks should also use existing and share All future vehicle platforms with All future Cadillacs and completely abandon using and sharing vehicle platforms with Chevy and GMC. Buick needs to move way more upmarket positioned below Cadillac but not on it and compete with Acura, Genesis, Lexus and Volvo while Cadillac and Lincoln compete with the British, German and Italian car brands and also Ultra-Luxury brands Bentley, Maybach and Rolls Royce. Hopefully Lincoln will also get Sedans, Coupes and Convertibles again too.
Tigger . “MONKEY SEE MONKEY DO???”
And your point?