The plant will produce electric vehicles in Coahuila
General Motors Co (GM.N) said Thursday it will invest $ 1 billion in a manufacturing complex in Mexico, drawing immediate criticism from the American auto workers union as it prepares to build electric vehicles in 2023 in the border state of Coahuila.
GM said it is building a new high-tech paint shop starting in June at the Ramos Arizpe site, which currently assembles conventional internal combustion vehicles, including Chevrolet Equinox and Blazer models, along with engines and transmissions. .
The United Auto Workers criticized GM’s decision to build electric vehicles in Mexico instead of using union members in the United States when Washington is considering big new incentives for electric vehicles.
“At a time when General Motors is calling for a significant investment by 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 American taxpayers and the American workforce, “the UAW said. Vice President Terry Dittes in a statement called it “unseemly” to accept subsidies from the United States government and to manufacture vehicles outside the United States.
GM responded to the UAW statement 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 White House did not immediately comment, but President Joe Biden asked for $ 174 billion to boost US electric vehicle production, sales and infrastructure.
On Wednesday, Biden told US lawmakers that “there is no reason why American workers cannot lead the world in the production of electric vehicles and batteries.”
GM issued a press release on the Mexican investment in Spanish only on its website and then provided an English translation when asked.
GM said it also plans to build batteries and electrical components at Ramos Arizpe and is making other improvements to its manufacturing complex.
GM did not say when it began building its new paint shop, but has previously been criticized by former President Donald Trump for its operations in Mexico. Trump had threatened to tax GM vehicles imported from Mexico.
GM aims to build two Chevrolet electric SUVs in Ramos Arizpe starting in 2023, according to Sam Fiorani, who tracks future vehicle production for AutoForecast Solutions.
A GM spokesperson said the company was not announcing or confirming the electric vehicles to be built in Coahuila, describing Fiorani’s comment as speculation.
The automaker already makes electric vehicles at four locations in the United States and Canada. GM has said it aims to halt US sales of gasoline-powered passenger cars by 2035.
GM’s expansion in Ramos Arizpe will include new capacity to manufacture batteries and other electronic components, which will begin during the second half of this year, the company reported.
“I am confident that this investment will contribute to continue boosting Mexican manufacturing while bringing development to the region, the industry and the country,” said Francisco Garza, president of GM’s Mexican unit, during a webcast announcement.
Garza said he could not rule out adding a third production shift to the Ramos Arizpe plant in the short term, which would depend on meeting certain economic conditions.
The facility’s current workforce has 5,600 direct employees.
Fountain: Reuters
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