General Motors Invests $691 Million in Mexico for Eight-Speed Transmissions, Engines
Investment Could Foreshadow New Transmissions for Trucks, SUVs
Right on the heels of the announcement of its $133 million investment in its Wentzville, Missouri, plant , General Motors has just announced a massive $691 million investment in Mexico at several production facilities, one of which will build eight-speed automatic transmissions.
Part of the investment will go to building a new production site in Silao in central Mexico, northwest of Mexico City and southwest of San Luis Potosi, where an existing transmission production facility will be upgraded to produce the new-generation eight-speed transmissions. GM builds full-size trucks and SUVs in Silao, including the late Chevrolet Avalanche and Cadillac Escalade EXT. Silao also builds Chevrolet Silverado and GMC Sierra. Production of the 2014 Silverado and Sierra started in Silao in late April.
Part of GM's investment in Mexico will also go to its Toluca engine plant, where the company is putting $211 million. Toluca, just west of Mexico City and also a major production city for Chrysler in Mexico, currently produces four-cylinder and V-8 engines for GM.
No information was given on a production timeline, so the eight-speed transmissions may not make it into vehicles until the 2015 model year.