GM TO INVEST $1B IN MEXICO TO BUILD ELECTRIC VEHICLES

General Motors Co. said on Thursday it will invest $1 billion in a manufacturing complex in Mexico, drawing immediate criticism from the union for US autoworkers as it prepares to build electric vehicles in 2023 in the border state of Coahuila.

GM said it is building a new high-tech paint shop that 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, Sharay Angulo and David Shepardson reported for Reuters.

The United Auto Workers (UAW) criticized GM's decision to build EVs in Mexico instead of using the union's members in the US when Washington is considering large new incentives for electric vehicles.

"At a time when GM is asking for a significant investment by the US government in subsidizing electric vehicles, this is a slap in the face for not only UAW members and their families but also for U.S. taxpayers and the American workforce," said UAW Vice President Terry Dittes in a statement.

He called it "unseemly" to accept US government subsidies and make vehicles outside the US.

GM responded to the UAW statement by noting it has "recently announced nearly 9,000 jobs and more than $9 billion in new electric vehicle or battery cell manufacturing facilities in Michigan, Ohio, and Tennessee."

The White House did not immediately comment, but President Joe Biden has called for $174 billion to boost U.S. EV production, sales, and infrastructure. On Wednesday, Biden told U.S. lawmakers "there's no reason why American workers can’t lead the world in the production of electric vehicles and batteries."

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