General Motors Company (NYSE:GM) will focus on the manufacturing of electric vehicles (EVs) in Mexico with an investment of more than $1 billion. 

EVs production in 2023 in Mexico

According to a communiqué from General Motors, the Ramos Arizpe production complex in Mexico will start producing EVs in 2023. Mexico-based facility engages in the manufacture of Chevrolet Blazer, transmissions, engines, and Chevrolet Equinox. 

General Motors’s EV initiative is on the backdrop of Bidden Administration’s directive to automakers in the US to produce vehicles including, EVs in the nation. However, it is unclear whether General Motors will import EVs from Mexico into the US. General Motors currently markets Mexico manufactured vehicles in the US. 

UAW members react to the plan of General Motors

Terry Dittes, VP (United Auto Workers), said the decision of General Motors to invest in Mexico for the manufacture of EVs is a slap in the face for the tax of the view that tax payers’ money should payers and the union members. The company is lobbying hard with the US government to avail incentives for the manufacture of EVs. 

He further said the company is requesting the government for significant investments to offer subsidized EVs in the US. Terry also believes that taxpayers’ money should not go into other nations while enjoying the government subsidies.

General Motors will invest funds in electronic components like electric motors and battery packs at the Mexico-based facility in H2 2021. According to a press release, the company will operate a new paint shop in June 2021.

The Mexico plant will be the 5th plant of General Motors to manufacture EVs in North America. The company previously announced plans to manufacture EVs at two plants in Michigan and other plants in Tennessee. It also planned to establish another plant in Ontario, Canada.

General Motors will either convert the existing plants or build new plants to manufacture EVs because it plans to offer EVs by 2035 exclusively. 

General Motors expects to unveil at least 30 new EVs by 2025 under its $27 billion investment plan. 

Lays off employees

General Motors sent an email to its 1419 employees at the Talegaon plant on April 16, 2021. The company laid off all its workers at an Indian subsidiary near Pune.