The Wall Street Journal and MSN Money reported today on the details of U.S. carmaker General Motors’ $420 million investment in its Mexico plants, which are located in the states of Guanajuato and San Luis Potosi. According to MSN Money, Hernandez said the latest round of investments would create at least 1,000 new jobs, which will help to strengthen Mexico’s growing middle class.
This $420 million is just a part of the total $900 million investment in Mexico real estate that was announced by GM in 2011 and adds a significant amount to the total of more than $5 billion that the automaker has already invested in Mexico over the last six years.
According to GM Mexico President Ernesto Hernandez Quiroz, the Detroit-based company will invest at least $120 million in the San Luis Potosi for production of the Chevrolet Trax, an SUV crossover vehicle, and another $100 million at this location for a new transmission plant. $200 million will also be invested at the Silao plant in Guanajuato, where the auto giant plans to begin production on a new breed of pickups in 2013.
The Chevrolet Trax is scheduled to be unveiled at the Paris auto show this September and will begin production at the Mexico plant by the end of the year. In addition to the new pickup trucks, the Silao plant will also continue producing the Cadillac Escalade.
According to the Wall Street Journal, “GM is only the latest in a series of auto companies and auto-parts companies announcing expansions in Mexico, or setting up operations for the first time.”
And Mexican President Felipe Calderon has already pointed out that Mexico has become the world’s fourth-largest exporter of automobiles in the world, rising from its spot at ninth place just six year ago. Add to this the fact that the country’s automobile export numbers were up an impressive 14 percent this June compared to just one year ago, and it’s easy to see why Mexico is projected to become a major player in the industry over the coming years.