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GM Outlines Powertrain Investments in Mexico

June 26, 2013
Fuel-efficient transmissions New, expanded plants at three sites

General Motors outlined a $691-million capital investment program for three manufacturing operations in Silao, San Luis Potosi, and Toluca, Mexico. The projects cover new initiatives for GM’s transmission and engine plants there, and additions to previously announced investments. The automaker said it aims to produce “higher performing, more fuel-efficient powertrains,” a strategy similar to what it has initiated for its U.S. operations over the past two years.

GM has staked out more than $2 billion in investments for its U.S. manufacturing base since it emerged from bankruptcy in 2010.

GM announced $900 million on a series of projects Mexico in 2011, and it outlined another $420 million in 2012 for the plants at San Luis Potosi and Silao.

The San Luis Potosi complex operation includes transmission production and an assembly plant for trucks and SUVs plant. The Silao complex produces engines and transmissions, and has stamping and assembly lines. The Toluca operation includes aluminum and iron foundries, and an engine production plant.

The new projects include $349 million to build a new transmission plant at Silao to produce GM’s new eight-speed transmissions. Those products are part of the automakers’ new fuel-efficiency strategy.

At the San Luis Potosi complex, where GM builds Chevrolet subcompacts, it will invest $131 million to expand the transmission plant.

GM said these two elements of the new investments would complete the $900-million program introduced in 2011.

Lastly, GM indicated it would invest $211 million to expand its Toluca complex. It was previously reported that GM had begun to add new aluminum melting and casting capacity there.

"GM is about to reach 78 years in Mexico and we celebrate it with this new investment, which means more employment and development opportunities for the regions of Silao, San Luis Potosi and Toluca; and more advanced technology that will benefit our customers," stated Ernesto M. Hernandez, president and managing director of General Motors de Mexico.

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)