GM To Boost US Output By 300,000 Units With New Investment — But Trump's New Tariff Threat Keeps Investors On Edge

CFO Paul Jacobson said investors were concerned about the capital strain from evolving trade policies but maintained that GM had found a way to align next-generation vehicle programs with efficient capital allocation.

General Motors’ plan to invest $4 billion in expanding U.S. vehicle production would increase domestic output by roughly 300,000 units, according to its finance chief.

Speaking at the Deutsche Bank Global Auto Industry Conference 2025, GM Chief Financial Officer Paul Jacobson acknowledged that the investment — triggered by President Donald Trump’s steep tariffs on auto imports — would push the company’s total U.S. production past 2 million vehicles annually.

“I don't think what the administration is doing is trying to pick winners and losers necessarily,” Jacobson said. “I think there's clearly a policy shift, policy agenda.”

He also said investors were concerned about the capital strain from evolving trade policies but maintained that GM had found a way to align next-generation vehicle programs with efficient capital allocation.

“Four billion is a lot of money, but I think we've been able to thread that in ways that are capitalizing on the next generation of vehicles coming in to do it efficiently,” he said.

As a result, GM’s capital spending guidance has been slightly raised from $10 billion to a range of $10 to $12 billion through 2027.

"I think we don't ever want to be in a position where we're shocking the consumer and reacting. So you raise prices, you create a lull in demand and then you have to start discounting again," Jacobson said.

Despite the announcement, retail sentiment on Stocktwits remained bearish for GM, with a 40% drop in message volume over 24 hours. 

The caution reflects uncertainty around the regulatory environment, especially after Trump doubled down on tariff threats. 

At a White House event on Thursday, the president said he may soon hike tariffs further to spur even more U.S. manufacturing.

“I might go up with that tariff in the not-too-distant future,” Trump said. “The higher you go, the more likely it is they build a plant here.” 

He pointed to GM’s latest investment and Hyundai’s $21 billion commitment from March, which included plans for a new U.S. steel facility, as proof that his trade strategy was working. 

“They wouldn’t have invested 10 cents if we didn’t have tariffs,” he said.

GM’s stock closed down 1.2% on Thursday and slipped another 0.5% in after-hours trading. Year-to-date, shares are off by 7.6%.

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