Despite drug war fears,the U.S. automotive giant said this week that it will invest $500 million in Mexico to produce a new line of engines and a whole new line of cars. Grace Lieblein,chief executive of GM Mexico,said that manufacturing these new cars in Mexico will allow for a 10% increase in efficiency.
GM is not the only car company buying into the idea of investing in Mexico. Chrysler said this year that it will be investing $550 million and Ford Motor Company is opening a $3 billion dollar assembly plant in Mexico that will create over 2,000 jobs. BMW the world’s largest make of high-end automobiles,said it would invest $2.4 billion in the Mexican economy by 2012.
The CEO of GM said it has already invested $4.1 billion over the last four years and plans to invest much more in the next five years South of the Border. This seems to be a trend,as there are already 18,000 major American companies operating and investing in Mexico and more coming daily.