Domestic Production Increase
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GM expects to top Ford in U.S. vehicle production as it faces up to $4 billion in tariff costs
CNBC· 2026-01-27 16:26
Core Insights - General Motors (GM) aims to increase its domestic production to an industry-leading 2 million units annually, driven by the need to mitigate tariff costs which amounted to $3.1 billion in 2025 [1][2] Production Plans - GM plans to ramp up production by adding gas-powered crossovers from Mexico to plants in Kansas and Tennessee, as well as full-size SUVs and pickup trucks to an idled plant in Michigan, potentially reaching its production goal by 2027 [3] - The company expects to outproduce Ford Motor, which assembled 2.1 million vehicles in the U.S. in 2024, thereby reclaiming its title as the top assembler of vehicles in the U.S. [2][4] Tariff Costs - GM's expected tariff costs for 2026 are projected to be between $3 billion and $4 billion, aligning with the $3.1 billion incurred in 2025, which was lower than previous estimates of $3.5 billion to $4.5 billion [2][6] - The company has managed to reduce its net tariff exposure through self-help initiatives and supportive policy actions, although costs could rise depending on duties on vehicles imported from South Korea [7]