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News Article

Why is GM Investing US$1 Billion in Mexico?

By Alejandro Enríquez | Tue, 05/04/2021 - 16:20

Last week, GM announced a US$1 billion investment in its Ramos Arizpe manufacturing complex and the inauguration of a new painting and coating plant that will start operations on June 2021. This is only the first step of an ambitious plan that aims to transform GM's manufacturing complex into its fifth most important site after Spring Hill, Factory Zero, Orion, and CAMI and will begin to manufacture EVs in 2023.

"We are proud that GM's vision of Zero Crashes, Zero Emissions and Zero Congestion will contribute to the manufacturing of electric vehicles," said Francisco Garza, President and DG of GM de México during the announcement. "We are confident all economic conditions are met so this complex eventually expands its job offering and shifts for some operations," he said.

GM has been in Mexico for over 85 years, with manufacturing plants in Ramos Arizpe, San Luis Potosi and Toluca. In the latter, GM also has an engineering center and aftersales parts facility. The company is Mexico's top automotive exporter and manufacturer and one of Mexico's top 5 best-sellers.

With the investment in Ramos Arizpe, the complex will serve as a platform to manufacture electric vehicles in 2023, according to GM. The complex will also produce batteries and electric components. To this date, GM is the first to announce the manufacture of EV batteries in the country. The first set of electric components will be called "Drive Units," the propulsion system for EVs.

At the moment, the complex in Ramos Arizpe produces Chevrolet Equinox and Chevrolet Blazer models, as well as engines and transmissions. At this moment, the company has 5,600 employees and exports its models to more than 40 countries. "GM Ramos Arizpe celebrates its 40-year anniversary and from the very beginning it has been relevant for the corporation thanks to the emblematic models produced at our lines,” said Alicia del Valle, Executive Director of the Ramos Arizpe plant. "This manufacturing complex has promoted the development of talent and suppliers in the region and we are very happy to bring a new project," she said.

Later last week, the company released its 11th annual sustainability report which detailed its plans toward its zero-emissions future. GM's recent investments in Factory Zero follow the company's target to become carbon neutral by 2040.  “Once-in-a-century technology transformations like these often leave people behind,” said Mary Barra, Chairman and CEO of GM. “At GM, the transition to an all-electric future will be equitable and inclusive.”

 

Photo by:   GM de México
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst