General Motors, GM announced that they will be starting production of electronic vehicles in Mexico in 2023. GM plans to invest $1 billion dollars as a part of its development of the production plant in the border state of Coahuila, Mexico.
The investment also includes setting up an all-new paint plant with the present factory. The plant is expected to start operations from June 2023 at the Ramos Arizpe site. This site currently produces cars like the Equinox and Blazer models, along with some transmission and engines for the above-mentioned models.
GM has already announced electronic vehicle production in the US and Canada in 4 various locations. The expansion at the Ramos Arizpe site will start making batteries and components for electronic vehicles by mid-2021.
During a webcast, Francisco Garza, the President of GM’s Mexican unit, stated that “I’m sure this investment will contribute to continuing boosting Mexican manufacturing while bringing development to the region, the industry, and the country”.
He also said that he could not dismiss adding a third production shift to the Ramos Arizpe facility, depending on the economic conditions.
Fun Fact – The Ramos Arizpe facility opened in 1981 and this plan is the first major plan introduced by GM for this plant.
GM plans to convert all its manufacturing plants into EV facilities on a global scale and aims to cater only to electric vehicles by 2035. The EV plan is a part of GM’s mission to accelerate EV adoption and steer the world towards an all-electric future.
We’re on a mission to accelerate EV adoption and help lead the world into an all-electric future. Learn more about the ambitious transformation that earned us a spot on #TIME100Companies from our Chairman and CEO, @mtbarra, below. https://t.co/s5LBd4RxyX
— General Motors (@GM) April 27, 2021
The electronic vehicles that GM intends to make in its Mexican plant are still not known to the public. But, Sam Florani, who tracks future vehicle production, says that GM aims to build 2 Chevrolet electric SUVs at the Ramos Arizpe plant.
The announcement of this plant also goes hand-in-hand with the timing of the Biden administration which aims to increase American manufacturing, including EVs. This move by the Biden Administration gives subsidies to American manufacturers who invest in manufacturing and R&D.
The Resent
The UAW, United Auto Workers, is not happy about the investment by GM. Terry Dittes, the Vice President of UAW, states that this move is like a “slap in the face” to the union members and the taxpayers of the country, as the company is pushing incentives to support EVs.
The Ramos Arizpe site is to be the 5th site to produce EVs for GM following Spring Hall, Tennessee; Factory ZERO at Detroit-Hamtramck; Orion Assembly in the Orion Township, and CAMI in Ingersoll, Ontario.
In essence, the UAW is angry that these cars will be produced out of the US and sold in the US, meaning that the subsidies will go to workers outside the US. Dittes said that if these cars are sold in the US, they should be made by Americans, and that is the reason why the government invests in companies like GM.
GM’s Response
GM responded to the UAW stating that the investment in the factories in the US will add union jobs. This response is true, as GM has or has planned to invest in various factories throughout the US.
Dan Flores, a spokesperson for General Motors said “General Motors is committed to creating good-paying U.S. jobs as we transition to an all-electric future and our recent announcements are proof of that commitment.”
GM has invested $2.2 billion dollars in Factory ZERO to build EVs. GM also says that they plan to employ 2,200 employees to make the Hummer EV, the Hummer EV SUV, Silverado electric, and GM’s sled-driving electric Cruise Origin.
At the Orion Assembly, GM plans to invest $402 million to build the Bolt EV, Bolt EUV, and Cruise AV test vehicles. It is expected to support almost 1,100 jobs.
At Spring Field, GM plans to invest $2 billion. This factory will be used to create the Cadillac Lyriq EV SUV along with the current gas-powered models. This plant is expected to support 3,200 jobs.
At the CAMI factory, GM intends to spend $800 million in investment for the production of the EV600 delivery truck for GM’s Bright Drop start-up.
