General Motors will from 2023 make electric vehicles in Mexico as part of a $1 billion investment at its facility in the northern border state of Coahuila that includes a new paint plant, the U.S. carmaker said on Thursday.
The high-tech paint plant will start operations from June at the Ramos Arizpe site, which currently assembles conventional internal-combustion vehicles including the Chevrolet Equinox and Blazer models, along with engines and transmissions.
The automaker, known as GM, already makes electric vehicles at four locations in the United States and Canada.
GM's Ramos Arizpe expansion will include new capacity to make batteries and other electronic components, which will begin during the second half of this year, the company said.
"I'm sure this investment will contribute to continue boosting Mexican manufacturing while bringing development to the region, the industry and the country," said Francisco Garza, president of GM's Mexican unit, during a webcast announcement.
Garza said he could not rule out adding a third production shift to the Ramos Arizpe facility in the near term, which would depend on meeting certain economic conditions.
The facility's current workforce has 5,600 direct employees.