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| General Motors |
$4 Billion Investment Strengthens Domestic Manufacturing and Scrap Generation
General Motors (GM) has announced a $4 billion investment linked to new vehicle assembly assignments at three of its U.S. plants. The selected sites—in Kansas City, Kansas; Orion Township, Michigan; and Spring Hill, Tennessee—will build next-generation passenger vehicles for model years 2027 and 2028.
This major reshoring initiative reinforces GM’s pledge to support American jobs and domestic innovation, while also signaling positive implications for regional recyclers. As auto assembly ramps up, scrap streams such as steel, OCC, aluminum, and plastic film are expected to grow significantly.
Michigan and Tennessee to See Shift from Imports to Local Production
In Michigan, GM will restart gasoline-powered SUV and light truck production at its Orion plant by early 2027. This complements EV assembly at Factory Zero, where models like the Silverado EV and GMC Hummer EV will continue to be produced. The dual-track production strategy reflects GM’s balanced approach to EV and internal combustion vehicle demand.
Spring Hill, Tennessee, will begin production of the Chevrolet Blazer in 2027—a model currently manufactured in Mexico—while maintaining EV production of the Cadillac Lyriq and Visitiq, along with the Cadillac XT5.
In Kansas City, the Fairfax Assembly plant will take over Chevrolet Equinox production from mid-2027, and start Chevrolet Bolt EV assembly by the end of this year. The move reflects GM’s aim to localize supply chains and improve production resilience amid tariff and trade policy shifts.
Boost to Recycling Ecosystems and U.S. Industrial Reshoring Efforts
These developments align with broader trends tracked by the Reshoring Initiative, which recorded 244,000 manufacturing jobs announced in 2024, though early 2025 figures project a potential dip. GM’s large-scale investment bucks that trend and supports localized metals and materials recovery by increasing production volume at U.S. sites.
The Orion Township and Spring Hill expansions are especially promising for ferrous and nonferrous scrap markets, with operations expected to generate recoverable material from both manufacturing processes and component supplier activity. Scrap processors and logistics operators in these regions should prepare for heightened volumes starting in 2026.
Meanwhile, GM’s separate $888 million investment in its Tonawanda, NY engine plant adds momentum to reshoring activity in the metals manufacturing space. Together with other projects like CBC Global Ammunition in Oklahoma and Williams International in Florida, the U.S. is seeing a strategic return of materials-intensive industries.
ScrapInsight Editorial Commentary
GM’s commitment to U.S. assembly is a clear signal to recyclers and supply chain planners. With localized production on the rise, particularly in vehicle and engine manufacturing, scrap processors in automotive hubs should position themselves to capitalize on higher feedstock availability. These trends reinforce the symbiotic relationship between manufacturing growth and circular material recovery.
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