U.S. Auto Component Manufacturing Brings $6.6 Billion in Capital Spending

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Industrial Info Resources is tracking $6.6 billion worth of capital-spending projects in the U.S. for the production of automotive components. GM and Toyota account for about one-third of the investment.

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GM and Toyota Lead the Way

According to Industrial Info Resources data, there is $6.6 billion worth of capital-spending projects in the U.S. for the production of automotive components. General Motors and Toyota account for about one-third of the investment.

The Industrial Info Resources Global Market Intelligence (GMI) Industrial Manufacturing Project Database offer key details on these projects in a list of detailed project reports.

GM leads all companies with $1.38 billion worth of projects, buoyed by the automaker's largest single investment ($888 million) in an engine plant (operational in Tonawanda, New York.) The project, which kicked off last year, is designed to begin producing a gasoline- and-diesel-powered, sixth-generation small-block V-8 engine to be used in the company's line of full-size trucks and SUV's. First production is expected in 2027.

This comes as the automaker--like others--is pivoting away from electric vehicles (EVs) in favor of hybrids and vehicles powered by internal combustion engines (ICE). For more information, see May 30, 2025, article - GM to Invest $888 Million to Build Gasoline-Powered Engines and January 20, 2026, article - Automakers Pull a Slow U-Turn on EVs.

However, two planned projects from GM also will exclusively support ICE vehicles: At the Toledo Propulsion Systems plant in Ohio, a $40 million equipment addition would allow for production of a new 9-speed front-wheel drive transmission for light-duty trucks. Meanwhile, a $300 million expansion at a campus in Romulus, Michigan, would boost production capacity of 10-speed transmissions used in full-size trucks and SUVs.

Readers can view the three related project reports and plant profiles.

Two projects from Toyota are aimed at boosting production of hybrid vehicles. In the planning stage is a $453 million expansion at its operational engines and transmissions plant in Buffalo, West Virginia. The project is designed to increase assembly of 4-cylinder hybrid-compatible engines and sixth-generation hybrid transaxles. A $88 million expansion already underway at the plant adds a production line exclusively for hybrid transaxles, with first production expected in 2027. View the project reports here.

Toyota earlier this month said it planned to shift some auto production to the U.S. from Mexico--which comes as uncertainty around the United States-Mexico-Canada Agreement (USMCA) trade agreement and ongoing U.S. tariffs is driving automakers to reshore their manufacturing efforts. For more information, see July 10, 2026, article - Toyota: $3.6 Billion to Shift Some Automotive Production to U.S. from Mexico.

Other Companies Jumping In

Traditional parts supplier Valeo is investing $225 million to build a manufacturing plant in McAllen, Texas, in order to exclusively produce central computer units for GM. According to Valeo, the units utilize processors to manage vast amounts of data from multiple sensors and systems to control essential vehicle functions. Production is expected to begin next year. View the project report.

Taiwan-based Minth Group plans to invest $430 million in order to renovate 1 million square feet at the site of a former steel mill in Gadsden, Alabama. The new facility would produce plastic and aluminum components for vehicles produced at U.S plants, including those owned by Hyundai and Kia; see the project report.

Electric vehicle-related projects also are underway. CelLink Corporation is adding 25 manufacturing lines to its operational plant in Georgetown, Texas that produces flexible wire harnesses for EV battery packs. Meanwhile, major automaker Stellantis is retooling its Dundee Engine Plant in Michigan to support production of battery trays for EVs. View the project reports here.

The GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Key Takeaways

• $6.6 billion: Total investment value of active and proposed auto component-manufacturing projects across the U.S.
• GM and Toyota account for one-third of the total investment value.
• Components supporting hybrid and ICE vehicles are gaining traction as automakers pivot from EVs.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).