GM Targets Ford's US Production Crown by 2027 Amid $4B Tariff Pressure

General Motors (GM-US) plans to surpass Ford (F-US) as the largest US automaker by production volume by 2027, aiming to assemble approximately 2 million vehicles annually domestically. The move comes as GM faces an estimated $3-4 billion in annual tariff costs, primarily from imported vehicles. CEO Mary Barra announced the production expansion strategy on January 27, 2026, noting GM absorbed $3.1 billion in tariffs in 2025. The company will shift production of fuel-powered crossovers from Mexico to Kansas and Tennessee plants starting 2027, while adding full-size SUVs and pickups at a currently idle Michigan facility. Ford currently assembles about 2.1 million vehicles in the US, with 80% of its sales domestically produced, while GM imported approximately 1.23 million vehicles in 2024. Tariff exposure remains a key risk, particularly for GM's South Korean imports including Chevy Trax and Buick Envista models. The company's 2026 guidance assumes 15% tariffs on Korean vehicles, though rates could revert to 25% if US-South Korea trade negotiations fail.