General Motors Pulls the Plug on Chevrolet Retail Operations in China

Detroit automakers warned that proposed changes to the U.S.-Mexico-Canada trade deal could add billions in annual costs. A 50% U.S.-made content rule and higher North American content could raise expenses by at least $2B per automaker, on top of existing tariffs. GM expects $2.5B-$3.5B gross costs; Ford estimates about $1B net. Ford will shift Lincoln production from China to U.S. factories.

Bloomberg reports, citing an SEC filing, that General Motors is abandoning just-in-time delivery and will use a third-party inventory structure via Procura Auto Parts LLC. Procura will buy and hold critical components worth up to $4.5 billion, with GM paying fees and interest tied to SOFR plus 1.55%.

Reuters reports Detroit automakers plan to tell the Trump administration that proposed changes to a revised North American trade deal could add billions in annual costs. A U.S. proposal for at least 50% U.S.-made content and higher North American content could cost each automaker at least $2B/year, on top of existing tariffs. GM expects $2.5B-$3.5B tariff gross costs in 2025; Ford estimates about $1B net.

Ford plans to shift production of some Lincoln models from China to the US starting in 2030, according to CEO Jim Farley and Reuters. Tariffs on China-made vehicles, including a 52.5% duty on the Lincoln Nautilus, plus Connected Vehicle Rule limits, are cited. Ford sold about 34,000 Nautilus units in the US last year.

Ultium Cells, the GM LG Energy Solution battery JV, will restart assembly lines at its Warren, Ohio plant next week after a seven-month shutdown, according to Reuters. The plant makes NCMA pouch cells for most GM EVs. Capacity is over 45 GWh/year. The closure began in January amid weaker EV demand; about 1,400 employees will return.

Ultium Cells, the LG Energy Solution and GM JV in Warren, Ohio, will restart battery cell production next Monday after a seven-month shutdown, according to an LG Energy Solution official and Reuters. The plant’s workforce will rise to about 1,400. It has ~35 GWh annual capacity. GM cut EV output amid weaker demand and the loss of a $7,500 federal EV tax credit in 2025.