Bloomberg Talks General Motors CFO Paul Jacobson Talks GM Dodging Tariffs With Production Shift to The US
Jun 11, 2025
Paul Jacobson, CFO of General Motors, discusses a groundbreaking $4 billion investment aimed at reshaping U.S. automotive production amidst tariffs. He highlights the shift of vehicle manufacturing, like the Silverado and Sierra, from Mexico to U.S. plants, enhancing domestic parts sourcing. The conversation also covers the complexities of rare earth supply chains and the strategic moves to ensure sustainable access to battery materials. Jacobson explains how GM navigates pricing strategies while focusing on stability and maintaining value for consumers.
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GM's Strategic US Investment
- GM's $4 billion investment offsets much of the $5 billion tariff impact by optimizing U.S. manufacturing footprint.
- Expanding U.S. plants boosts efficiency, meets strong truck demand, and provides job security.
Flexible Vehicle Production
- GM moves Equinox ICE production to Fairfax and Blazer to Spring Hill to flexibly produce ICE and EVs.
- This flexibility lets GM respond rapidly to consumer demand shifts in U.S. markets.
Supply Chain Retooling Strategy
- GM leverages government MSRP offsets to gradually retool its supply chain for increased U.S. production.
- They focus on balancing production efficiency with maximizing domestic sourcing where practical.