General Motors Company has announced it will channel US$1 billion into a Mexican manufacturing facility, a move that has been vehemently opposed by the United Auto Workers (UAW), as it prepares to build electric vehicles in 2023 in Coahuila.
General Motors confirmed its plan to set up a technologically advanced paint shop in Ramos Arizpe, which currently houses plants assembling GM automobiles, including the Blazer and Equinox SUV, alongside transmissions and engines.
The UAW censured General Motors' intent to manufacture electric vehicles in Mexico, rather than employ union members in the U.S, during a time when the government is contemplating major incentives to drive EV development.
"At a time when General Motors is asking for a significant investment by the U.S. 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," Terry Dittes, Vice President of United Auto Workers, said, calling the move "unseemly" to accept incentives by the government of the United States and manufacturing vehicles outside the U.S.
In its response, General Motors clarified that 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."
No statement has been issued about the Mexican auto plant by the White House, though President Biden plans to direct US$174 billion to drive manufacturing, selling, and infrastructure development for electric vehicles in the United States.