General Motors has raised concerns over a new renewable energy proposal in Mexico that would give priority to the state-run power utility over private players.
General Motors Mexico CEO Francisco Garza participated in a panel in Mexico City last week addressing the energy proposal, Reuters reports, with Garza expressing concerns that the law would prevent it from being able to invest in renewable energy sources at its automotive assembly plants.
“Unfortunately, if the conditions aren’t there, Mexico won’t be a destination for investment, because the conditions won’t be given that permit us to meet our objective of having zero emissions in the long term,” Garza said, as quoted by Reuters. “We’re evaluating that if there aren’t the conditions, that dollar that was going to be invested in Mexico will go to the United States, Brazil, China or Europe, and Mexico will no longer be a key destination.”
Under the proposal, the Mexican government would favor the state-run electric utility over private investment, particularly with regard to renewable energy. For this reason, the bill would cancel some future renewable energy investments from private foreign backers, giving priority to Mexico’s various hydro, nuclear and natural gas plants operated by the public Comision Federal de Electricidad.
GM sees implementing renewable energy at its assembly plants as a priority, with the automaker working toward a goal of producing net-zero carbon emissions company-wide by 2040. GM Mexico spokesperson Teresa Cid later told Reuters the automaker was not threatening to leave Mexico over the renewable energy proposal, but that the automaker would remain focused on its goal of eliminating carbon emissions from its operations.
“GM must meet its (zero emissions) vision and we must follow that path,” Cid said. “So that’s where the risk would be.”
GM previously laid out plans to invest $1 billion in its Ramos Arizpe plant to build battery-electric vehicles. Cid said that as of now, the plan to build EVs at the facility is still set to go ahead, although this may be subject to change.