General Motors will launch operations to assemble the Chevrolet Groove and Aveo in Mexico, as the Detroit automaker moves toward shifting more of its production supply chain to the Mexican market. 

GM previously produced the cars in China to export to other markets.

The change is part of GM’s US $1 billion investment in Mexico, which the firm announced in January, underscoring the automaker’s long-term commitment to the country where its market share is over 12%.

President Sheinbaum made the announcement on Tuesday at an event in Toluca, México state, alongside GM Mexico CEO Francisco Garza Rodríguez, where she said that following the imposition of U.S. tariffs on the automotive industry, she held talks with global automotive executives.

“The first thing I told them was: we want you to stay in Mexico. Don’t think about leaving!” Sheinbaum said.

Economy Minister Marcelo Ebrard said the announcement was the result of months of direct negotiations between the president and GM’s global CEO, Mary Barra.

Starting next year, GM will be assembling vehicles at its Ramos Arizpe plant in Coahuila, which began operations 45 years ago and employs around 5,000 workers. The firm expects to produce around 80,000 vehicles a year by 2030. 

The Aveo is one of the top sellers in the Mexican market and is GM’s top-selling car in Mexico, with over 60,000 sold in 2025. 

“This announcement is concrete proof that Plan México is working and that collaboration between the government and the private sector is fundamental to strengthening employment, national productive capacity and sustainable industrial development,” Garza Rodríguez said.

GM’s investment is expected to strengthen Mexico’s automotive industry and create more skilled jobs. The move implies greater certainty in the Mexican market following GM’s decision to lay off 1,900 ⁠workers from Ramos Arizpe earlier this year, citing weak U.S. demand.

GM is responsible for approximately 200,000 direct and indirect jobs in Mexico. 

The GM announcement “confirms confidence in Mexico,” the Business Coordinating Council stated on social media. “This decision represents more investment, more jobs, and greater confidence in the country’s productive capacity, in line with the objectives of the Plan México.”

With reports from Reuters, La Jornada and López-Dóriga Digital