General Motors announced it will be investing $4 billion in domestic manufacturing plants over the next two years, shifting production from Mexico to the United States.

General Motors CEO Mary Barra said the investments will allow for plants located in Kansas, Michigan, and Tennessee to increase how many cars it’s producing in the U.S. by 2 million.

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“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” Barra said in a statement. “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.”

GM’s announcement comes as negotiations on President Donald Trump’s tariffs enacted on imported vehicles and Mexico have seen little headway. In addition to a 25% tariff on Mexico, Trump enacted a 25% tariff on all imported vehicles.

Production for the Chevrolet Blazer and Chevrolet Equinox, which are currently made in Mexico, will be moved to the United States in 2027.

UAW President Shawn Fain praised GM’s investment, pointing to Trump’s tariffs as being a catalyst. 

“GM’s decision to invest billions in American plants and prioritize U.S. workers is exactly why we spoke up in favor of these auto tariffs,” Fain said Wednesday in a statement. “The writing is on the wall: the race to the bottom is over. We have excess manufacturing capacity at our existing plants, and auto companies can easily bring good union jobs back to the U.S.”

There are a total of 50 U.S. GM manufacturing plants and parts facilities across the country, including 11 vehicle assembly plants.

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GM said its capital spending guidance for 2025 remains unchanged between $10 billion and $11 billion, but projects its range will increase from $10 billion to $12 billion through 2027. 

Last month, the company announced an $888 million investment in its Tonawanda Propulsion plant, which will support the production of V-8 engines.