General Motors, Nissan to boost production at US plants due to Trump tariffs

General Motors and Nissan are both planning to boost production at their US-based plants, while Chrysler-parent Stellantis plans to roll out bigger discounts in response to President Trump’s reciprocal tariffs.

GM said it was adjusting its manufacturing strategy by shifting more production of its popular light-duty trucks to Fort Wayne, Ind., following the Trump administration’s imposition of a 25% tariff on imported vehicles and auto parts.

GM CEO Mary Barra hinted at this shift during an earnings call earlier this year, emphasizing the company’s capacity to adapt.

“We have the capacity in the United States to shift some of that,” Barra stated, indicating that domestic production could help the automaker sidestep significant tariff-related costs.

Currently, GM assembles its Chevrolet Silverado and GMC Sierra trucks across facilities in the United States, Canada and Mexico.

But the Detroit-based automaker will now have to concentrate production domestically in order to maintain competitive pricing amid higher tariffs.

The 25% tariff on imports went into effect Thursday, while the tax on auto parts kicks in May 5.

GM’s decision to bolster production at its Fort Wayne facility will result in creating between 225 to 250 new jobs, according to a letter that was sent by United Auto Workers chairman Rich LeTourneau to employees.

LeTourneau emphasized the importance of higher production levels for job stability, noting that increased volume is crucial to ensuring ongoing employment.

To support the increased output, GM will hire temporary workers and schedule additional overtime shifts, according to Fort Wayne Plant Director Dennys Pimenta.

Additionally, the company plans to speed up the assembly line, increasing its pace to about nine or 10 vehicles per hour.

Implementing these operational changes requires a brief pause in production, with the facility set to shut down temporarily from April 22 to April 25 immediately following Easter weekend.

The brief shutdown won’t affect production at GM’s other plants in Oshawa, Canada, and Silao, Mexico.

Before GM fully transitions its production strategy — a process that could take years — the automaker and others with global supply chains face potentially thousands of dollars in additional vehicle costs due to the new tariffs.

Currently, the Chevrolet Silverado pickup truck’s starting price is $38,995, while the GMC Sierra starts slightly higher at $40,295.

Meanwhile, Nissan opted to maintain two production shifts at its Smyrna, Tenn., plant — reversing an earlier decision to scale down to one shift.

The Japanese automaker cited the need to bolster domestic output amid tariffs affecting imported vehicles from Mexico and Japan.

Stellantis — which also owns Jeep and Ram — is launching a new sales initiative that extends employee-level pricing to all US customers on most of its vehicle lineup, according to the Wall Street Journal.

Beginning Friday, buyers will be able to purchase top-selling models such as the Jeep Wrangler and Ram 1500 pickup at substantial discounts, according to an internal memo reviewed by the Journal.

Customers may also choose from existing promotional offers running through April, the memo noted.

Stellantis, which on Thursday announced it would shutter plants in Canada and Mexico — is expected to formally present the program to its US dealerships during a scheduled briefing Friday morning.

The discount echoes the promotion rolled out by Ford on Thursday as part of the the Big Three automaker’s “From America, For America,” sales initiative.

The sale offers employee discounts to consumers to stimulate demand and address rising vehicle prices due to tariffs.

Employee pricing can often lead to savings worth several thousand dollars off a vehicle’s sticker price.