General Motors Invests Into US Plants as EV Strategy Shifts

General Motors has committed US$830m to three US manufacturing facilities for propulsion systems and metal casting. The investment takes the company's total US capital expenditure to more than US$6bn for 2025 and 2026.

The funding supports production at sites in Romulus, Toledo and Saginaw. General Motors says the expansion prepares the facilities for next generation full-size trucks and SUVs.

The commitment comes after General Motors posted an improved profitability outlook for 2026 in its first quarter results. The company has shifted investment priorities away from electric vehicles.

Transmission capacity expansion

Romulus Propulsion Systems in Michigan receives US$300m to increase capacity for 10-speed transmissions. The units support full-size trucks and SUVs.

The facility previously received US$300m in 2025 for capacity expansion. Romulus employs about 1,000 people.

Toledo Propulsion Systems in Ohio receives US$40m to boost 10-speed transmission output for light-duty trucks. General Motors announced this initial US$40m investment to employees in March

According to General Motors, the Toledo expansion diversifies the plant's manufacturing flexibility and confirms its role as a support facility. Toledo Propulsion employs around 1,650 people.

Metal casting operations upgrade

Saginaw Metal Casting Operations in Michigan receives US$150m to increase head casting volume for Gen 6 engines. The components support full-size pickup trucks and Corvettes.

The site employs roughly 350 people. General Motors has not disclosed the projected volume increases at Saginaw.

Mike Trevorrow, General Motors's Senior Vice President of Global Manufacturing, says: "By investing in these plants, we're investing in our people and the communities they call home.

"The work our teams do in Romulus, Toledo and Saginaw Metal supports families, strengthens local businesses and fuels economic growth across the country. This US$830m investment is another clear signal of our commitment to these facilities, the exceptional people who work here and the customers who depend on the products we build every day."

Electric vehicle strategy shift

General Motors announced the investment as it realigns its product strategy away from electric vehicles. The company recorded a US$6bn charge to close some electric vehicle investments in January 2026.

According to General Motors's 2025 earnings release, the company expects electric vehicle losses to improve by US$1bn to US$1.5bn from right-sizing capacity and lowering volume. In April 2026 General Motors temporarily halted production at its Detroit-Hamtramck assembly plant called Factory ZERO.

The facility manufactures electric vehicles. General Motors has not provided a timeline for resuming production at the site.

First quarter financial results

General Motors reported first quarter 2026 revenue of US$43.6bn. Net income attributable to stockholders reached US$2.6bn and adjusted EBIT reached US$4.3bn.

The company raised its EBIT guidance due to a favourable adjustment of roughly US$0.5bn from a US Supreme Court decision on tariffs. General Motors now expects gross tariff costs of US$2.5bn to US$3.5bn in 2026.

It now expects gross tariff costs of US$2.5bn to US$3.5bn in 2026. GM originally expected a US$3bn to US$4bn hit from tariffs for the year.