GM to Invest $4 Billion in U.S. Plants, Boosting Union Jobs and Wages

In a significant move, General Motors has unveiled plans to allocate $4 billion for investments over the next two years across three of its U.S. facilities located in Michigan, Kansas, and Tennessee. This initiative is expected to generate a substantial number of union jobs in the country.

This development represents a pivotal moment in efforts to mitigate the adverse effects of NAFTA and several decades of "free trade" policies. The introduction of auto tariffs has been instrumental in steering manufacturing back to the United States, gradually mending the damage inflicted on working-class communities by job outsourcing and weakened local economies.

The decision by GM to elevate wages globally signifies a shift away from the competitive "race to the bottom," where workers are pitted against each other across borders, vying on minimal living wages while companies amass substantial profits.

“GM’s decision to invest billions in American plants and prioritize U.S. workers is exactly why we spoke up in favor of these auto tariffs,” stated UAW President Shawn Fain. “The writing is on the wall: the race to the bottom is over. We have excess manufacturing capacity at our existing plants, and auto companies can easily bring good union jobs back to the U.S. They can prove the naysayers wrong by investing in our communities and putting workers before corporate greed. GM is showing that it can be done.”

The United Auto Workers (UAW) has long advocated against unfair trade practices that permitted automakers to relocate U.S. jobs overseas, resulting in wage reductions and the closure of numerous once-bustling plants. Over the last decade, more than two million vehicles have vanished from American production lines, while factories in Mexico and other low-wage regions thrived under an exploitative trade framework.

According to UAW Vice President Mike Booth, “The UAW has always stood up for job security—and we are seeing results. In just the past two months, GM has announced five major investments in American auto plants. That’s no coincidence. Skilled UAW members in Michigan, Kansas, Tennessee, and beyond are the reason GM turns a profit. It’s great to see the company reinvest in the union workforce that makes it all possible. Our members show their American Spirit and pride in building the world-class vehicles and components that keep this industry strong—right here at home.”

As the automotive sector realigns its supply chains and investment strategies back to the United States, the UAW continues to advocate for a comprehensive industrial policy, which includes:

• Strong tariffs on imported vehicles and parts to prevent job offshoring.
• Renegotiation of USMCA, ensuring enforceable labor standards and a North American minimum wage.
• Reshoring of the auto parts supply chain to bolster American manufacturing throughout the supply chain.
• Federal support aimed at protecting and creating quality auto jobs, rather than corporate handouts.
• An end to stock buybacks and profit hoarding, encouraging auto companies to reinvest in employment, wages, and U.S. manufacturing rather than benefiting executives and Wall Street investors.

This recent announcement underscores that with effective trade policies and worker-led efforts, the U.S. can revitalize its auto industry for the benefit of working-class Americans, not just Wall Street. The announcement follows GM's nearly $1 billion investment in Tonawanda Propulsion and a $579 million investment in Flint Engine Operations. The Flint commitment was part of the union's 2023 national contract, secured through the historic Stand Up Strike by the membership.

“We’ll work with anyone—Democrat, Republican, or independent—who’s serious about ending the ‘free trade’ disaster and building an economy that respects working-class people,” said Fain. “But let’s be clear: tariffs without worker power just mean bigger paydays for the boss. Tariffs increase profits—but only unions increase wages. Tariffs can protect an industry. Only unions can protect workers.”

This investment is a step forward, yet substantial work remains to fully dismantle the race to the bottom. It necessitates enforceable worker protections both domestically and internationally. This includes true job rights, the freedom to assemble and organize, and robust unions across borders. A trade policy devoid of labor rights equates to corporate welfare, which is unacceptable.

Reversing offshoring and revitalizing the auto industry also requires policies benefiting the entire working class, including a strong National Labor Relations Board, secure retirements through Social Security, guaranteed healthcare via Medicare and Medicaid, and dignity both on and off the job. These measures are essential to transform today’s achievements into tomorrow’s norms, extending beyond autoworkers to all working-class individuals.