GM Has Announced A $1 Billion Investment In Mexico For EV Production 

For a while under Mary Barra, it has been clear that GM has bet all its chips on EVs. The company is amidst a major transition and has been making many investments in the space. Now the latest one being in Mexico where it will invest $1 billion for the production of electric vehicles. The investment will be focused on the Ramos Arizpe production complex which is the first major announcement towards the Central American country after GM had poured in billions in the US and Canada. GM has said this facility will start production of at least one EV by the beginning of 2023. 

GM CEO Mary Barra has a bold plan to transform the company to making just EVs by 2035

GM has the Hummer EV and the Cadillac Lyriq earmarked as its latest EVs based on the Ultium batteries. But these are combining out in the latter half of 2021 and early 2022. The facility in Ramos Arizpe currently supports the production of the Chevrolet Equinox and Chevrolet Blazer, especially the production of engines and transmissions for the vehicles. 

This move has angered people in the US after the Biden administration made calls to elevate the production of EVs in the country. The United Auto Workers (UAW) group VP, Terry Ditties, called this move a slap in the face of the union members and American taxpayers. 

"At a time when General Motors is asking for a significant investment by the U.S. government in subsidizing electric vehicles, this is a slap in the face for not only UAW members and their families but also U.S. taxpayers and the American workforce," he said in a statement.  

GM has already invested heavily in the US and Canada, and now it is Mexico's turn 

Of course, the President of GM in Mexico is happy about this investment. He also thanked the local Mexican government for promoting the investment. 

"I'm sure 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. This investment includes new capacity for battery packs and other electronic components like electric motors for which manufacturing will begin in the second half of this year. It will be GM's fifth manufacturing plant in North America that will be adapted for EVs. As this plant is already servicing cars sold in America, chances are it will continue to service EVs sold in the states, which is why it is capturing the ire of the UAW. 

GM is expected to build or convert all its plants to EV facilities globally as it propels towards just making EVs by 2035. It wants to build 30 new EVs by 2025 with an investment of $27 billion for both electric and autonomous vehicles.