GM to invest $1 billion in Mexico to produce Aveo and Groove

General Motors will invest $1 billion ^[1] in Mexico to produce the Chevrolet Aveo and Groove models starting in 2027 ^[4].

This shift is a central part of "Plan México," a government strategy to increase domestic production and reduce reliance on imports. The move is designed to ensure that automotive manufacturers remain in Mexico despite trade pressures from the U.S.

Presidential candidate Claudia Sheinbaum said the initiative is a strategy where everyone fits. The investment aims to produce 80,000 vehicles per year ^[2], ending the current practice of importing these specific models from Asia ^[1].

The strategy responds directly to 50% tariffs ^[3] imposed by former U.S. President Donald Trump on vehicles manufactured in China. By shifting production to Mexican soil, General Motors can avoid these steep costs while maintaining its market presence in North America.

Sheinbaum said the plan seeks to keep automotive producers in Mexico in the face of the tariffs imposed by Donald Trump ^[1]. The investment will be directed toward the company's manufacturing complexes, though reports differ on the specific site. Some sources state production will occur at the Ramos Arizpe plant in Coahuila ^[5], while others indicate it will be moved to the Toluca plant ^[6].

The broader "Plan México" focuses on boosting exports, and strengthening the domestic supply chain to make the country more resilient to external trade volatility. This transition represents a pivot away from Asian manufacturing hubs toward regional integration within the North American trade bloc.