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GM Boosts U.S. Production and Domestic Content to Offset Tariff Costs and Shift Strategy

General Motors is ramping up U.S. vehicle production, particularly full-size trucks at its Fort Wayne, Indiana plant, to counter the financial impact of tariffs on imported vehicles and parts.

This move is part of broader "self-help" measures to increase U.S. content and lessen reliance on Mexico, while complying with the USMCA trade agreement.

Despite recent policy shifts that slightly reduce tariff burdens for U.S.-built vehicles with high domestic content, GM still expects a $3.5 billion hit to pretax profits, projecting $10–$12.5 billion for the year.

The automaker is also working with suppliers to localize parts production, including expanding U.S.-based battery module assembly. While aiming to keep vehicle prices stable, GM acknowledges higher tariffs will likely lead to increased consumer costs and reduced discounts.

The company is adjusting its product strategy to align with demand for both internal combustion and electric vehicles, slowing EV production to avoid discounting.

In parallel, GM is advancing its software-defined vehicle and autonomous driving initiatives, integrating its Cruise unit and preparing for Level 3 autonomy, as competitors like Ford scale back similar projects due to cost and complexity.

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