GM To Invest $540 Million In Mexican Engines Plant

[Tempest]

http://online.wsj.com/article/BT-CO-20110120-711993.html

Quote:
MEXICO CITY (Dow Jones)--General Motors Co. (GM) said Thursday it is investing $540 million in an engines plant in central Mexico that will produce two new types of fuel-efficient engines.

In a statement, General Motors de Mexico said the first phase of the project at its plant in Toluca involves the production of aluminum parts, and the second phase the manufacture of four-cylinder, 1.6-liter and 1.8-liter engines, mostly for cars produced in Mexico.

General Motors is Mexico's top auto maker, with production last year of close to 560,000 cars and light trucks, up 60% from 2009, according to the Mexican Auto Industry Association.

 

[Drew99GT]

Let me guess; you think this is great news Tempest.

 

[Tempest]

Originally Posted By: Drew99GT
Let me guess; you think this is great news Tempest.

Not at all. Taxpayer money being funneled to create jobs in a foreign country seems a little counter productive.

 

[dishdude]

What GM vehicles are made in Mexico? I know the SRX is, I can't think of anything else of the top of my head.

 

[oilboy123]

That sucks, I guess it's somewhat better than them doing it in China or Russia.

 

[Johnny]

Originally Posted By: dishdude
What GM vehicles are made in Mexico? I know the SRX is, I can't think of anything else of the top of my head.


Don't know about now, but the AVALANCHE use to be made there.

 

[Falcon_LS]

Originally Posted By: Johnny
Originally Posted By: dishdude
What GM vehicles are made in Mexico? I know the SRX is, I can't think of anything else of the top of my head.


Don't know about now, but the AVALANCHE use to be made there.


Still is. So is the Cadillac Escalade EXT, some Silverado/Sierras and the HHR.

 

[Spazdog]

Originally Posted By: dishdude
What GM vehicles are made in Mexico? I know the SRX is, I can't think of anything else of the top of my head.


The HHR, Avalanche, and some Sierra/Silverados are made in Mexico.

It seems like more Silverado LS and LT models are made in Indiana and more LTZs are made in Mexico. That could just be coincidence that all the LTZs coming into my shop have a VIN that starts with "3"

 

[OneEyeJack]

A lot of taxpayer money is used to send work to China and Mexico and other foreign countries. This thread should be free of comments about nasty, underhanded, double dealing dishonest slimy politicians so there is nothing left to say on the subject that does not fit into one of these categories.

 

[JHZR2]

Boo. This is no good. The ramifications of GM going bankrupt may have been too severe, justifying a bailout. And, IF and only IF GM has bought out the government to become a sovereign company again, it may be allowed and OK...

But regardless, I hate to see anything going to Mexico when it could be done here.

 

[OVERKILL]

Ford has operations in Mexico. They have for a while. I have no problem with that. Just like I have no problem with GM having operations in Mexico.

But I DO have a problem with a company that was bailed out by our tax dollars spending those dollars to create jobs that are not within the countries that provided that money to prop them up. And those countries would be Canada or the USA.

This is a very bad move by GM, and will only work to create even more animosity for a company that many already had mixed or bad feelings on because of the bankruptcy.

This is not a sign to the taxpayer that "GM has changed".

 

[Bluestream]

Originally Posted By: Tempest
Originally Posted By: Drew99GT
Let me guess; you think this is great news Tempest.

Not at all. Taxpayer money being funneled to create jobs in a foreign country seems a little counter productive.


Given that they (Mexico) buy a lot of GM vehicles it seems fair to me.

It's a competitive world, and GM needs to do what they had to do to make money. Its that simple.

 

[Mr Nice]

We need very cheap labor and no drama from the UAW.

 

[nitehawk55]

Another stupid move by GM . After the bailout they should be creating jobs in North-Am .
G'vt should say NO!! , jobs here first !!!!

 

[OVERKILL]

Originally Posted By: nitehawk55
Another stupid move by GM . After the bailout they should be creating jobs in North-Am .
G'vt should say NO!! , jobs here first !!!!


Mexico is part of North America.

BUT

They did not provide money to GM during the bailout and bankruptcy. Canada and the USA did.

The argument put forth was that GM was "too big to fail". That the impact of GM's demise would cripple our economies.

So, we ponied up billions of dollars to prop this company up. This was done to save jobs, to save GM and to supposedly avoid the irreparable damage that the complete demise of GM would cause.

And to show us how much they valued our support, they are spending over 1/2 a billion to create jobs in another market instead of the ones that helped keep it alive.

It is a stupid move. It is a selfish move. And it is one that is going to anger a lot of people. It is the same old GM.

 

[TooManyWheels]

If it makes any difference to your opinions, this may be for an existing, rather than new, engines plant. They have been making engines there for at least twenty years. This is based on my own memory of buying a Made in Mexico long block about twenty years ago, and it wasn't a new phenomena then.

 

[Bluestream]

Originally Posted By: TooManyWheels
If it makes any difference to your opinions, this may be for an existing, rather than new, engines plant. They have been making engines there for at least twenty years. This is based on my own memory of buying a Made in Mexico long block about twenty years ago, and it wasn't a new phenomena then.


Ahh, don't go bringing facts into this!

 

[mechanicx]

I don't have a problem with GM building plants and building and selling in Mexico or China. It is probably more cost effective selling where you build in Mexico. It's good for the US economy for domestic atumakers to have operations in other countries. The problem comes in if and when those foreign operations supply the US market. And it's true GM and others have been making engines, radios etc in Mexico for many years, way before GM had financial problems and bankruptcy.

 

[Nick R]

*Sigh*

GM has operations in mexico. They are a huge seller of cars. How popular would they become (with the population AND the Mexican government) if they refused to invest in their country.

Same goes for china. It would be impossible for GM to sell vehicles in China if they weren't manufactured there. Is it good for US jobs? Not really no. Is it hurting anything? Not really, no. As much as we may not like it, noone can deny that mexican labor is cheaper than US, while still maintaining some semblance of quality control.

Also, FWIW GM has invested large amounts in it's US operations as well. But it has to keep the other markets that it sells cars in happy as well.

 

[oilboy123]

Well if Mexico becomes a bigger player in the manufacturing sector that will at least help Mexico become a more prosperous country.

This will in part contribute to people not wanting to exodus because they have good jobs. So in a way maybe it's not a bad thing.