Business News: GM will invests $1bn in Mexico to build electric vehicles.
General Motors plans to invest more than $ 1 billion in Mexico to produce electric vehicles, the company announced Thursday. The investment in its Ramos Arizpe manufacturing complex is the automaker’s first major announcement to produce electric vehicles in Mexico after confirmed billions of dollars in investments in the United States and Canada.
The facility will begin manufacturing at least one electric vehicle starting in 2023, GM said. The company declined to discuss which vehicle or vehicles will be produced there. The plant and support facilities currently produce Chevrolet Equinox and Chevrolet Blazer, as well as engines and transmissions.
“At a time when General Motors is calling for a significant investment from the US government to subsidize electric vehicles, this is a slap in the face not only for UAW members and their families, but also for US taxpayers and the American workforce, “UAW Vice President Terry Dittes said in a statement, calling it” inconvenient “to accept US government subsidies and produce vehicles outside the US.
GM responded to the UAW statement by noting that it “recently announced nearly 9,000 jobs and more than $ 9 billion in new electric vehicle or battery cell manufacturing facilities in Michigan, Ohio and Tennessee.”
The investment includes new capacity for battery packs and other electronic components such as electric motors, which will begin in the second half of this year. It also includes a new paint shop, which is expected to start operations in June, according to a translated press release from the company.
The Ramos Arizpe plant is expected to be GM’s fifth production site in North America to produce electric vehicles following announcements for two plants in Michigan and others in Tennessee and Ontario, Canada.
GM is expected to continue building or converting facilities into electric vehicle facilities globally as it moves to become an automaker offering electric vehicles only by 2035. This includes at least 30 new electric vehicles by 2025 as part of a $ 27 billion investment plan in electric and autonomous vehicles during that time frame.
GM’s Ramos Arizpe expansion will include a new capacity to manufacture batteries and other electronic components, which will begin during the second half of this year, the company said. “I am confident that this investment will help continue to revive Mexican manufacturing while driving development in the region, industry and country,” said Francisco Garza, president of GM’s Mexican unit, during a webcast announcement.