GM announced its plans to invest $691 million to expand its operations in Mexico, as well as the Toluca engine plant.
GM plans to build a new facility in Silao, central Mexico, where it will manufacture 8-speed transmissions, and it will also upgrade an existing plant located in San Luis Potosi, where it will build next-generation transmissions. Over the past years automakers have begun to expand in Mexico, a market close to the lucrative US auto market, with cheap labor force and numerous free trade agreements. Analysts believe that Mexico will eventually overtake Brazil and become the biggest economy in Latin America.
“The automotive sector is today one of the pillars of the national economy, representing more than 20 percent of manufacturing GDP and continues to be, for many reasons, a fundamental industry in attracting investments to productive sectors of the economy,” Hernandez said at a press conference in Mexico City with Mexico President Enrique Pena Nieto.
With this investment GM will increase development and employment in San Luis, Silao and Toluca. In Silao, GM builds the Chevrolet Silverado and GMC Sierra pickup trucks, in Ramos Arizpe it builds the Chevy Sonic, Captiva, and Cadillac SRX, while in San Luis Potosi it produces the Chevy Aveo, Trax and Tracker.