General motors presses ahead with $1bn Mexico investment despite US tariff headwinds

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General Motors is pushing forward with a $1bn investment plan across Mexico in 2026 and 2027, targeting annual production capacity of 80,000 vehicles by 2030, as the US automaker bets on long-term domestic manufacturing despite a 15% average tariff on Mexican vehicle exports to the United States,  La Jornada and El País reported.  President Claudia Sheinbaum attended a ceremony in Toluca marking the expansion, framing the commitment as consistent with her administration's Plan México industrial strategy, designed to shore up the country's export base against external trade pressures. 'This is the vision of believing in Mexico and thinking about Mexican workers,' she said. GM Mexico president Francisco Garza said local assembly of vehicles for the domestic market would begin in 2027, with the Groove and Aveo models to be built at the company's Coahuila plant. The Aveo, a compact long popular in the Mexican market, will shift production there from existing facilities. Garza described the project as 'conceived in Mexico for Mexico ,' aimed at reducing import dependence and advancing sustainable industrial development. The automaker, which has operated in Mexico for 90 years, says it buys more than $28bn annually from over 650 domestic suppliers and directly employs 23,000 people across four plants in the State of Mexico , Coahuila , Guanajuato and San Luis Potosí. One in every four vehicles produced in Mexico last year came from a GM facility, the company said. The investment comes as Mexico's automotive sector navigates significant strain. Vehicle exports fell 2.7% in 2025 to around 3.3mn units, while domestic production dipped 0.9% to below 4mn vehicles, both reflecting the impact of US tariffs imposed since 2025. The sector accounts for nearly a third of all Mexican exports to the United States , making it the country's single most exposed industry to Washington's trade measures. Mexico remains the largest exporter of vehicles to the US market among all trading partners, a position its government is seeking to protect through incentives for domestic production and investment attraction under Plan México.   © 2026 bne IntelliNews, source Magazine

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