As a result of increasing demand in the United States,Mexico has become a prime location for many manufacturers who want to import in close proximity. GM has joined their number with their investment of $540 million in an engine plant.
As reported by the Economic Times,the General Motors company will create 500 direct and 500 indirect jobs with their new plant. The plant will primarily build two types of low emissions engines for the American market. The engines will be designed to use less fuel and operate more efficiently. Toluca,which is located 50 km west of Mexico City,will serve as the site for the new plant.
“This announcement is another important step for our customers and the entire GM team in Mexico,” said GM de Mexico president and managing director Grace Lieblein.
General Motor's plant is just one of many to come to Mexico in the past year. Many auto companies,such as Volkswagen and GM,seek out investment in Mexico because it is so close to the states.
“This confirms with facts the confidence in Mexico and the certainty of one of the most important companies in the world that Mexico is a safe and productive place to invest,” said Mexican President Felipe Calderon.
This investment “restores optimism and long-term viability to our operations at this complex,” stated Lieblein. She also said that the project will be done in two phases. The first phase will focus on the production of the components. The second will be for manufacturing engines for most Mexican produced GM vehicles.
Prior to the new plant opening,GM employed 11,500 people at the corporate offices in Mexico City. They also have offices in Toluca,Silao,Ramos Arizpe,Cupuan and San Luis Potosi.