Mexico remains a relevant site in automotive manufacturing. How you will remember a few years ago, different brands announced the installation of production centers in the country.
In 2016 Audi began producing the Q5 in San José Chiapa, Puebla. Two years earlier, in 2014, BMW announced its plan to settle in San Luis Potosí to operate in 2019 with the manufacture of the 3 Series, while Mercedes-Benz took advantage of its alliance with Nissan to assemble the A-Class in 2019.
To all of them are added brands such as Kia, Stellantis, Volkswagen, Ford, Nissan, General Motors, Honda, Jac, Mazda and Toyota, which together place Mexico as the seventh global producer of vehicles with 3.1 million units recorded in 2021 .
Today the Joint Venture between LG and Magna places Mexico in the select group of countries with the potential to produce electric vehicles. With an investment of 100 million dollars for a first stage, the LG Magna E-Powertrain company announced the construction of a plant in Ramos Arizpe, Coahuila. It will manufacture integrated inverters, motors and chargers that will be used by General Motors for the assembly of electric vehicles.
This complex will generate 400 new jobs and will start operating in 2023. Tom Rucker, president of Magna Powertrain, highlighted the strength of the company in the country: “Magna has a strong presence with more than 30 manufacturing facilities in Mexico. Being pioneers in Ramos Arizpe, we are very close to one of our largest Powertrain facilities, we have the support and knowledge of our colleagues who support us. Our partnership with LG brings many benefits, including the ability to support global automakers with a scalable, global portfolio. Scalability provides individual components to total electrified systems and gives us a unique ability to capitalize on market opportunities in each region. This installation is our first step, and a very important one, in showing our customers that we are ready to support and sustain electrification in North America.”
GM moves into production
On April 29, 2021 General Motors announced plans for its Ramos Arizpe complex; announced the investment of one billion dollars destined for the inauguration of its new Paint Plant as well as to prepare this facility for an expansion in the Assembly Plants and Global Propulsion Systems. The statement issued on that occasion by the corporation pointed out that “General Motors Ramos Arizpe has begun construction work on its new facilities within the Complex, where electric vehicles of GM brands will be produced from 2023.”
During the groundbreaking ceremony for the LG Magna e-Powertrain plant, Jeff Morrison, Vice President of Global Purchasing and Supply Chain at General Motors mentioned that:
“LG has been our partner in the area of electrification for over 15 years starting with the Volt and now the Bolt, and now we are going to our new electrification platform that is going to power all of our trucks and cars for years to come. And Magna, who has been our biggest supplier over the years to GM, has won Supplier of the Year many times with a very diverse and creative company. In my role at GM I am essentially responsible for helping to create the supplier base and supply chain that we need to power all of our vehicles. We’re going through this big transformation as an industry and we’re committed to a fully electric future and part of that is building a million electric vehicles but that’s not possible if we don’t have the right Supply Chain, one that’s resilient and sustainable, and for me this is a key part”.