General Motors CFO Paul Jacobson projected a $3 billion to $4 billion financial impact from tariffs for 2026 during a conference on February 6. To mitigate these costs and trade volatility, the company is launching a $5 billion investment to onshore production. GM aims to manufacture nearly 2 million vehicles in the U.S. by 2027.
The automaker is recalibrating its electric vehicle strategy due to slower-than-anticipated consumer adoption. Jacobson emphasized a target of 8% to 10% adjusted EBIT margins in North America.
As part of this strategic pivot, GM will retool several facilities previously designated for EV production. These plants will instead manufacture internal combustion engine vehicles to meet sustained demand for trucks and SUVs.