Thursday, January 29, 2026
BUSINESS

General Motors to Invest $1 Billion in Mexico

General Motors to Invest $1 Billion in Mexico

GM commits $1 billion to Mexico for 2026-2027, strengthening local manufacturing, domestic market focus, and alignment with Mexico's economic plans and electromobility transition.

General Motors (GM) reaffirms its commitment to Mexico. The U.S. automaker announced a $1 billion investment in Mexico for 2026 and 2027, aimed at strengthening its local manufacturing operations and bolstering its focus on the domestic market. The announcement of

was made by Paco Garza, President and CEO of General Motors de México, who emphasized that this investment is part of a new strategy aligned with the Mexican government’s efforts to stimulate the national economy and strengthen local production chains. “We closed 2025 with strong results, reaffirming our commitment to offering our customers innovation, quality, and value in every vehicle. We anticipate a 2026 filled with significant challenges, where we will adapt our strategy to respond to the changing needs of our customers,” stated the executive. This decision comes at a pivotal moment for the automotive sector, characterized by the transition towards electromobility, shifts in U.S. trade policy, and the momentum of Plan Mexico, which aims to increase production for domestic consumption and boost local content in the industry.

General Motors’ Strategic Investment in Mexico

General Motors’ investment gains significance after former U.S. President Donald Trump indicated that USMCA (T-MEC) is “not relevant” for his country, which generated uncertainty in supply chains and regional manufacturing strategies. Given this scenario, GM chose to reinforce its presence in Mexico, not only as an export platform but also as a key market for its long-term growth. The company affirmed it will continue to drive innovation and adjust its business model to meet domestic demand. Paco Garza emphasized that this investment is not a response to an isolated situation but rather a long-term vision: “As part of this new strategy, and in line with the Mexican government’s efforts to strengthen the domestic market, we will make a $1 billion investment over the next two years in our local manufacturing operations and will continue to work on future projects focused on domestic demand.” Although the automaker did not detail the specific projects that will benefit from these resources, it stated that the information will be released gradually as implementation plans progress.

Alignment with Plan Mexico and the Domestic Market

General Motors’ strategy also aligns with Plan Mexico, relaunched by the federal government last April, which sets clear objectives to strengthen the national industry: -Increase by 10% the production of cars destined for domestic consumption. -Increase by 15% the national content in the automotive value chain. GM’s investment aims to strengthen local assembly, develop infrastructure tailored to the needs of the Mexican consumer, and consolidate Mexico as a strategic hub for automotive manufacturing in an increasingly complex global environment.

Strong Results: GM Closes 2025 with Growth and Leadership

The investment announcement is underpinned by robust commercial performance in 2025. General Motors de México closed the year with sales of 198,153 units, allowing it to maintain its position as the second-largest player in the national automotive market, with a market share of 12.2%. The year-end was particularly dynamic. In December 2025 alone, the company’s sales grew by 11.2% compared to the same month of the previous year, driven by: -Chevrolet, with a 10% growth. -The Premium channel, comprising Buick, GMC, and Cadillac, which saw a 27.7% increase. This performance consolidated GM’s leadership in strategic segments, including: -Large SUVs -Small Vans -Compact Pickups -Luxury SUVs The diversification of its portfolio and its ability to cater to various consumer profiles have been key to sustaining its sales volume and profitability in the country.

General Motors Plants in Mexico

Currently, General Motors operates four plants in Mexico, where it produces light vehicles, trucks, and engines. These facilities are fundamental to its production strategy in North America: -Ramos Arizpe, Coahuila -Silao, Guanajuato -San Luis Potosí, capital -Toluca, Estado de México These plants supply the national market and position GM as the leading exporter of vehicles from Mexico, in addition to being one of the largest manufacturers of both internal combustion and electric vehicles in the country.

GM and Its Commitment to Electromobility

Beyond the current situation, General Motors has built a long-term strategy in Mexico. Between 2013 and 2021, the company invested over $6 billion to transform its production plant and advance towards electromobility. A key example is the Ramos Arizpe plant, where GM implemented a flexible manufacturing model that allows for the production of both internal combustion and electric vehicles. “We underwent a significant transformation a few years ago for flexible manufacturing, producing both internal combustion vehicles, which continue to be made on-site, and now electric vehicles,” explained the executive in recent months. This approach positions Mexico as a relevant player in the global automotive industry’s technological transition.

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