It has been a heated political season to say the least. Most recently, Ford was drawn into the mix in a big way when Republican presidential candidate, Donald Trump, condemned the U.S. automaker for moving all of its small car production to Mexico, investing heavily in the country.
But, it’s been all quiet on the General Motors front. And that’s on purpose. GM continues to move forward with its initial $800 million investment into small car production for Mexico, a plan announced around this time last year, according to The Detroit News.
GM has been mum on what vehicles it specifically plans to produce in Mexico, but as the market shifts towards larger vehicles and crossovers, profit margins dwindle on American-made small cars. We know Mexico will be responsible for some 2016 Chevrolet Cruze production and it will also build the 2018 Chevrolet Equinox alongside the CAMI plant in Canada.
In total, GM announced plans to invest $3.6 billion in Mexico for future small car operations in 2014. As for the overarching strategy, GM is being silent per the norm on what the products will be.
“For competitive reasons especially as it relates to future product – the specific details behind the investments get rolled out as we deem appropriate,” Pat Morrissey, a spokesman for the automaker, said.
Labor costs, which are a fifth of U.S. levels, and location have made Mexico a prime country to invest in for multiple automakers, including Volkswagen and Kia. Comprehensive international trade deals also make for prime investment.
GM is quick to reiterate its commitment to the United States, and with good reason. Last year, GM allocated $5.4 billion for U.S. plants and expansion. Since 2009, the automaker has invested $20 billion into the U.S., employing and keeping 97,000 workers nationwide.