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Released June 10, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking $8 billion worth of capital-spending projects in the U.S. that are geared toward manufacturing automotive components, which comes as tariffs loom over the automotive sector.
The projects include General Motors Company's (NYSE:GM) (Detroit, Michigan) recently announced $888 million project at an operational plant in Tonawanda, New York, to produce gasoline- and-diesel-powered V-8 engines; the project, which is expected to kick off later this year, would replace a $300 million project aimed at producing drive units for EVs, according to news accounts. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a detailed project report.
For more information, see May 30, 2025, article - GM to Invest $888 Million to Build Gasoline-Powered Engines.
At the Wall Street Journal's Future of Everything conference last month, GM Chief Executive Officer Mary Barra discussed U.S. tariffs, which, as of now, include a 25% tariff on all imported vehicles and another 25% tariff on all automotive parts.
"We're trying to make changes to pay less tariffs because we're strengthening our U.S. manufacturing," Barra said. "There's decisions we can make when we look at the entire equation. ... We have the capacity available in some of the assembly plants and engine plants that we have in this country that we're going to continue to utilize."
Vehicles assembled in the U.S. often have a lot of imported parts, and traditional parts supplier Magna International Incorporated (NYSE:MGA) (Aurora, Ontario)--which supplies a bevy of major U.S. automakers--is wrapping up a $200 million grassroot facility in Lawrenceburg, Tennessee that will produce truck frames. Subscribers can click here to read the project report.
But at an Automotive Press Association (Detroit, Michigan) media event in April, Magna Chief Executive Officer Swamy Kotagiri tempered expectations for reshoring production to the U.S., at least in the short term: "To build a plant like that -- from breaking ground to being operational -- takes about two years ... You're talking about facilities that are a million square feet. We're not talking hundreds of millions -- we're talking billions. It's not a flip of the switch."
Other capital auto component projects include ZF Friedrichshafen AG's (Friedrichshafen, Germany) $200 million electric vehicle component conversion at its axle drive plant in Marysville, Michigan, which is expected to wrap up in mid-2026, and Volvo's (Göteborg, Sweden) upgrades at the Volvo-Mack Powertrain Plant in Hagerstown, Maryland, expected to wrap up around the end of the year. Subscribers can read more information on the ZF and Volvo projects.
Projects in the planning stage include one attributed to Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan): a $88 million expansion at its engines and transmissions plant in Buffalo, West Virginia, which entails adding a new production line for hybrid transaxles that will be used in North America-assembled Toyota and Lexus models. Subscribers can click here for the project report.
The investment is "building on Toyota's unwavering commitment to reinvesting profits in its U.S. operations," the automaker said in an April press release. Toyota did not provide a construction start date, but did say first production is scheduled for late 2026. Industrial Info is tracking the project with a medium probability (70-80%) of kicking off in October.
Subscribers to the GMI Database can click here for all project reports mentioned in this article and here for related plant profiles.
Click here for a full list of active capital-spending projects in the U.S. attributed to auto component manufacturing.
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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The projects include General Motors Company's (NYSE:GM) (Detroit, Michigan) recently announced $888 million project at an operational plant in Tonawanda, New York, to produce gasoline- and-diesel-powered V-8 engines; the project, which is expected to kick off later this year, would replace a $300 million project aimed at producing drive units for EVs, according to news accounts. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a detailed project report.
For more information, see May 30, 2025, article - GM to Invest $888 Million to Build Gasoline-Powered Engines.
At the Wall Street Journal's Future of Everything conference last month, GM Chief Executive Officer Mary Barra discussed U.S. tariffs, which, as of now, include a 25% tariff on all imported vehicles and another 25% tariff on all automotive parts.
"We're trying to make changes to pay less tariffs because we're strengthening our U.S. manufacturing," Barra said. "There's decisions we can make when we look at the entire equation. ... We have the capacity available in some of the assembly plants and engine plants that we have in this country that we're going to continue to utilize."
Vehicles assembled in the U.S. often have a lot of imported parts, and traditional parts supplier Magna International Incorporated (NYSE:MGA) (Aurora, Ontario)--which supplies a bevy of major U.S. automakers--is wrapping up a $200 million grassroot facility in Lawrenceburg, Tennessee that will produce truck frames. Subscribers can click here to read the project report.
But at an Automotive Press Association (Detroit, Michigan) media event in April, Magna Chief Executive Officer Swamy Kotagiri tempered expectations for reshoring production to the U.S., at least in the short term: "To build a plant like that -- from breaking ground to being operational -- takes about two years ... You're talking about facilities that are a million square feet. We're not talking hundreds of millions -- we're talking billions. It's not a flip of the switch."
Other capital auto component projects include ZF Friedrichshafen AG's (Friedrichshafen, Germany) $200 million electric vehicle component conversion at its axle drive plant in Marysville, Michigan, which is expected to wrap up in mid-2026, and Volvo's (Göteborg, Sweden) upgrades at the Volvo-Mack Powertrain Plant in Hagerstown, Maryland, expected to wrap up around the end of the year. Subscribers can read more information on the ZF and Volvo projects.
Projects in the planning stage include one attributed to Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan): a $88 million expansion at its engines and transmissions plant in Buffalo, West Virginia, which entails adding a new production line for hybrid transaxles that will be used in North America-assembled Toyota and Lexus models. Subscribers can click here for the project report.
The investment is "building on Toyota's unwavering commitment to reinvesting profits in its U.S. operations," the automaker said in an April press release. Toyota did not provide a construction start date, but did say first production is scheduled for late 2026. Industrial Info is tracking the project with a medium probability (70-80%) of kicking off in October.
Subscribers to the GMI Database can click here for all project reports mentioned in this article and here for related plant profiles.
Click here for a full list of active capital-spending projects in the U.S. attributed to auto component manufacturing.
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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
