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General Motors commits $4 billion in Michigan's Orion Assembly Plant, two other facilities

GM announces $4 billion investment of three U.S. manufacturing plants
GM announces $4 billion investment of three U.S. manufacturing plants 02:57

General Motors announced on Tuesday a $4 billion investment over the next two years in three U.S. manufacturing plants, one of which is located in Michigan.

According to a news release from the automaker, some of the investment will expand Orion Assembly in Orion Township. The company says the facility will "begin production of gas-powered full-size SUVs and light duty pickup trucks" in 2027. GM says the investment will help meet the demand.

With the expansion, GM's Factory ZERO plant in Detroit will produce electric vehicle trucks, such as the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EV pickup and SUV.

The $4 billion investment also includes expansion of the Fairfax Assembly Plant in Kansas City, Kansas, and Spring Hill Manufacturing in Spring Hill, Tennessee. GM says the investment will allow the automaker to produce more than 2 million vehicles annually in the U.S.

"We believe the future of transportation will be driven by American innovation and manufacturing expertise," GM CEO Mary Barra said in the news release. "Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love."

The announcement further confirms GM's push away from turning the Orion plant into an EV factory. In 2023, the company delayed electric pickup truck production at the facility due to slow demand for EVs in the United States.

The automaker's latest investment comes two weeks after it announced an $888 million investment in the Tonawanda Propulsion Plant in Buffalo, New York, where it produces the next-generation V-8 engine.

Congresswoman Debbie Dingell said the investment is "good news for Michigan's workers and our role as a leader in the global auto industry."

"In order to remain a leader, we must be producing a robust product line that consumers want, including electric vehicles. The global market wants EVs," Dingell said. "This investment demonstrates the auto industry's commitment to this leadership, and U.S. policy must support it. I will continue to work with every stakeholder to invest in manufacturing here at home, bring back jobs from overseas, and support the workers and communities who have built their lives around the auto industry."   

Michigan Gov. Gretchen Whitmer issued the following statement:

"GM and Michigan have a long, rich history, and today's massive investment in Lake Orion is just the latest chapter. 

"I am grateful to GM for bringing more auto manufacturing back home to Michigan, protecting thousands of good-paying, union auto jobs. Over the last few years, GM has grown their footprint in their home state, and I am proud that the state of Michigan has been a strong partner in helping them 'build, baby, build!' We have worked aggressively to bring more auto jobs to Michigan by cutting red tape, incentivizing R&D, streamlining Renaissance Zones, and speeding up permitting, and I am proud that GM is delivering today.  

"Since I took office, we have been working across the aisle to win every deal that we can and bring more good-paying union jobs back home. We will continue our comprehensive, commonsense approach to growing our economy and compete with other states and nations while working with industry partners like GM to remain the #1 state for auto manufacturing and weather national economic uncertainty. 

"We don't care what you drive—gas, diesel, hybrid, or electric—as long as it's made in Michigan. Together, let's keep bringing manufacturing home, growing the middle class, and making more stuff in Michigan." 

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