Trump’s Tariffs Lead to Increased Production at General Motors’ U.S. Factory

Reuters reported exclusively on Thursday (April 3) that General Motors (GM) informed employees that it will increase production of light trucks at its assembly plant in Fort Wayne, Indiana in the United States.

The plant manager, Dennys Pimenta, announced this plan to employees via a live webcast on Thursday, mentioning the possibility of extending working hours. This strategic move is expected to boost local employment, with the plant needing to hire several hundred temporary workers.

On the day this news was released, President Trump’s executive order imposing a 25% tariff on imported cars began to take effect. Trump cited national security concerns and the necessity of establishing a strong supply chain when making this decision, asserting that it would enhance the development of the American manufacturing industry.

On Wednesday, Trump also signed a new executive order demanding a 10% tariff on all goods imported into the US, and higher tariffs on goods imported from dozens of countries including the EU, China, Vietnam, and Japan.

During a speech in the White House Rose Garden on Wednesday afternoon addressing the issue of reciprocal tariffs, Trump confirmed that the 25% car tariff would officially come into effect at midnight.

In a statement on Thursday, General Motors stated, “General Motors will make operational adjustments at the Fort Wayne assembly plant, including hiring temporary workers to support current manufacturing operations and business needs.”

“We will constantly update and adjust production plans; this is part of our standard process for evaluating and managing vehicle inventory,” the statement added.

The Fort Wayne plant produces the Chevrolet Silverado 1500 and GMC Sierra 1500 trucks. The automaker did not specify the extent of the increase in production for these two models or the exact number of temporary workers to be hired. However, Rich LeTourneau, the chair of United Auto Workers (UAW) Local 2209 chapter, mentioned that apart from hiring some part-time temporary workers, GM is also recruiting approximately 225 to 250 new full-time temporary workers following negotiations with the union.

LeTourneau stated that with the increased production, the number of job positions required per hour at the Fort Wayne plant will rise from 55 to 65.

General Motors also manufactures these two models in plants in Mexico and Canada.

To facilitate these adjustments, the Fort Wayne plant will halt production from April 22 to 25 after the Easter holiday.