GM Mexico Commits US$1 Billion in Local Production Through 2026

General Motors Mexico announced a US$1 billion investment to be deployed over the next two years across its local manufacturing operations, confirming its continued presence in the country through 2026 after months of market uncertainty over a potential exit or production cuts.

The announcement was made by Paco Garza, president and CEO, General Motors Mexico, who said the investment is part of a new corporate strategy aligned with government efforts to strengthen the domestic market and with future projects focused on internal demand. “We closed 2025 with solid results,” Garza said. “We will continue working on future projects focused on domestic demand, reinforcing our long-term commitment to Mexico.”

According to the company, GM ended 2025 with total sales of 198,153 units in Mexico, retaining its position as the country’s second-largest automotive brand with a 12.2% market share. In December alone, vehicle sales increased 11.2% year over year, driven by a 10% rise in Chevrolet sales and a 27.7% increase in the premium segment, which includes Buick, GMC and Cadillac.

GM reported that Buick and GMC each posted their highest annual sales figures on record in Mexico, while Cadillac recorded its strongest performance since 2017. The automaker also said it maintained leadership positions in several vehicle segments, including large SUVs, where it accounted for 78.8% of sales; small vans with 52.7%; luxury large SUVs with 39%; and compact pickups with 38.5%.

The investment announcement follows public debate in 2025 over possible production adjustments and reports that some vehicle models could be shifted to US plants beginning in 2027. During that period, Mexican government officials publicly rejected claims that GM was planning to close facilities or exit the country.

In June 2025, the automaker announced a US$4 billion investment in three US plants over the next two years to expand production capacity for both electric and internal combustion vehicles. The plan includes relocating production of several high-demand models, such as the Chevrolet Silverado and Chevrolet Equinox, from Mexico to the United States.

The announcement also comes amid comments by President Donald Trump questioning the necessity of the USMCA. In December 2025, MBN reported that the American Automotive Policy Council (AAPC), which represents Ford, General Motors and Stellantis, urged the Office of the US Trade Representative (USTR) to preserve the agreement’s core structure. Industry leaders noted that the USMCA has facilitated more than US$210 billion in US automotive investment and remains essential to North American supply chain integration.

Garza said the new investment framework is designed to provide continuity for GM’s manufacturing footprint in Mexico while supporting innovation and operations in core segments. The company did not disclose how the US$1 billion investment will be allocated among plants or specific production lines.

“General Motors Mexico will continue in 2026 to promote innovation, strengthen its presence in key segments, and move forward toward a more sustainable future,” the company said in a statement.