A manufacturer of vehicle transmissions based in Mexico wants to invest 54 million dollars in a new facility in Wixom.
While all major US automakers are rushing to invest in Mexico, there are apparently some South-American automotive companies that plan to go against the flow and to invest and create jobs north of the border. The Mexico City-based transmissions supplier Tremec wants to invest 54 million dollars and create more than 130 jobs to open its first major manufacturing operation in Wixom, Michigan, according to the Michigan Economic Development Corp. Furthermore, the state will support the investment with a 731,500-dollar grant. The new facility will include the company’s global business development headquarters, a technical support center, an aftermarket business unit and a new advanced automotive transmission production operation.
This announcement follows the recent reverse trend of automakers spending billions of dollars in Mexico, moves triggered by their intention to lower production costs and to benefit from the country’s affordable workforce and tariff-free entrance to the US market. As an example, General Motors said last year it would invest 5 billion dollars in Mexico from 2013 to 2018, Ford announced earlier this year its plans of putting 1.5 billion dollars into a new plant in the Mexican state of San Luis Potosi, while FCA’s facility in Toluca will start building the successor to the Jeep Compass and Jeep Patriot.
Via Detroit News