GM May Relocate Truck Production Over US Tariffs on Mexico

General Motors (GM) is evaluating adjustments to its production strategy in response to potential US tariffs on vehicles manufactured in Mexico and Canada. GM Chair and CEO Mary Barra stated that the company has the capacity to relocate some truck production to the United States if tariffs are implemented.

“We have the capacity in the United States to transfer some of that production. We also sell trucks globally, so we can analyze the origin of international market shipments. There are steps we can take to minimize the impact if tariffs are imposed on Canada or Mexico,” said Barra during a financial results teleconference.

The announcement comes as the White House reiterated plans to impose a 25% tariff on imports from Mexico and Canada, with the official announcement expected on Feb. 1. Despite Mexico’s diplomatic efforts to negotiate, White House Press Secretary Karoline Leavitt confirmed the measure is still scheduled.

“We are hopeful because Mexico has indicated that they are engaged in discussions to take necessary measures. But we are planning, and we have several tools we can use,” Barra acknowledged.

Mexico is a critical manufacturing hub for GM, with four production plants located in Ramos Arizpe, Coahuila; Silao, Guanajuato; San Luis Potosi; and Toluca, State of Mexico. These facilities produce models such as the Chevrolet Silverado, Blazer, Equinox, and GMC Sierra, along with engines and transmissions for domestic and international markets.

In 2024, GM assembled over 889,000 vehicles in Mexico, exporting 830,630 units—653,200 of which were shipped to the United States. Notable production figures included 234,681 units of the Chevrolet Equinox SUV, as well as significant volumes of the Silverado and Sierra pickup trucks. GM also led Mexico’s electric vehicle production with 99,529 units, accounting for nearly 60% of the country’s total EV output.

Odracir Barquera, General Director, Mexican Automotive Industry Association (AMIA), clarified that GM’s strategy does not involve a complete production relocation but rather a reassignment of vehicle destinations.

“What I understood from Mary Barra is that they are not moving production. They are shifting the destination of production so that Mexican-made pickups are directed more toward other countries rather than the United States, while US-produced vehicles are sold domestically,” he explained.

GM has long maintained a flexible North American manufacturing footprint, enabling it to adjust production in response to demand and trade policy changes. “There are moves we can make to minimize the impact if tariffs are imposed,” Barra noted.

Despite these trade policy concerns, GM remains committed to its long-term plans in North America. The company recently invested approximately US$1 billion to modernize its Ramos Arizpe plant, transitioning it to electric vehicle production. Additionally, GM’s operations in Mexico employ over 25,000 people and support a network of 330 dealerships.

“We have been discussing with the US administration the importance of a strong manufacturing sector and American leadership in advanced technologies,” Barra reaffirmed.