GM to invest $691 million to expand operations in Mexico

Article by Anita Panait, on June 27, 2013

General Motors has unveiled a $691-million investment plans to expand its Mexican operations. According to GM Mexico President Ernesto Hernandez, the plans calls for the expansion of GM's Toluca engine plant; construction of a new site in Silao to produce 8-speed transmissions; and an upgrade to its San Luis Potosi plant that will build next-generation transmissions.

Mexico has been tagged by a number of carmakers and analysts as a next largest economy in Latin America, surpassing even Brazil. The reason is clear: Mexico is signatory to several free trade agreements; offers a cheap and well-educated labor force; and is ideally situated just south of the United States.

According to Hernandez, the automotive sector now is one of the pillars of Mexico's national economy, as it accounts for over 20 percent of manufacturing GDP and continues to be a basic industry in "attracting investments to productive sectors of the economy."

He added that GM's investment will increase employment and boost development in Silao, San Luis Potosi and Toluca. The carmaker's expansion in Mexico is expected to result to new jobs in the country, where GM is also employing at total of 15,000 people.

The carmaker builds the Chevrolet Silverado and GMC Sierra pickup trucks in Silao; the Chevrolet Sonic and Captiva, and Cadillac SRX models in Ramos Arizpe; and the Chevrolet Aveo, Trax and Tracker vehicles in San Luis Potosi.

GM boasts of having the second largest vehicle output in Mexico, next to Nissan, according to the Mexican Auto Industry Association. [source: GM]

Topics: gm, mexico, investment

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Each time that Mini launches a new generation of the Countryman crossover, a John Cooper Works performance version is always expected to follow. When Mini unveiled the next-gen 2017 Mini...
by - January 18, 2017
Ford Mustang customers won’t be able to specify the V6 powerplant for the latest iteration of the carmaker’s pony car. This comes as the new 2018 Ford Mustang is saying...
by - January 18, 2017
The man sitting at the top of the performance division of Mercedes-Benz – Tobias Moers – cryptically indicated that the Mercedes-AMG GT4 could be really coming. Moers, chief executive of...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries