General Motors will build next-gen Chevrolet Cruze in Mexico

Article by Andrew Christian, on March 30, 2015

General Motors Co. is planning to produce the next-generation Chevrolet Cruze small car at its Coahuila site in Mexico. GM will make a $350-million investment in the project. The carmaker will still produce the Cruze at its Lordstown site in Ohio. So far, GM has identified only three site globally that will manufacture the next-generation Cruze, including in China.

A spokesman for the carmaker in the United States remarked that its Gunsan site in South Korea will continue to produce the current Cruze model to cater to demand in local and export markets. As part of a new wage agreement signed last summer, GM would build the next-generation Cruze in South Korea starting in 2017, according to a proposal seen by Reuters.

Carmakers are flocking to Mexico to take advantage of its low labor costs and access to the US market. For instance, Toyota is finalizing plans for its first passenger car assembly plant in the country while Volkswagen recently disclosed plans to invest $1 billion in its Puebla plant.

Once the plan materializes, it would be the first time the Cruze will be produce in Mexico, mainly for the domestic market. A GM spokeswoman in Mexico said the Cruze is currently imported to the country from South Korea. The US carmaker had been at odds with its workforce in South Korea.

In April 2013, then GM chief executive Dan Akerson angered union workers in the country after warning that the carmaker might shift operations from South Korea in the longer term. Union activists in South Korea had threatened "a war" if production was shifted from factories in the country.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016
Have you ever heard of the name Kris Singh? If you’re passionate about cars, you’ve probably come across this name at some point while you scour reports about the latest...
by - September 2, 2016