General Motors has announced plans to relocate production of two Chevrolet models from Asia to Mexico, marking a significant shift in its manufacturing strategy.

The automaker will move assembly of the Chevrolet Groove and Aveo from its Chinese joint venture bases to the Ramos Arizpe facility in Coahuila, Mexico, beginning in 2027.

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Investment and Production Targets

The relocation is part of a $1 billion investment initially announced in January 2026.

GM aims to boost domestic vehicle output at the Ramos Arizpe complex to 80,000 units annually by 2030.

The facility currently comprises five plants and employs over 5,000 workers to handle the increased production load.

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Alignment with Mexican Government Policy

The manufacturing expansion aligns with the Plan Mexico framework, a government initiative to reduce import dependence and strengthen domestic manufacturing.

Francisco Garza Rodríguez, president and CEO of General Motors Mexico, announced the production changes during an official event attended by Mexican President Claudia Sheinbaum Pardo and Economy Secretary Marcelo Ebrard Casaubón.

GM has operated in Mexico for three decades, with four manufacturing complexes employing more than 23,000 people directly.

The company purchases $28 billion in components annually from 650 domestic suppliers, employs 700 Mexican engineers for parts design, and runs over 300 sales points nationwide.

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The production shift occurs alongside other corporate restructuring efforts at GM.

On May 11, the company began workforce reductions affecting 500 to 600 salaried positions in its information technology division, primarily in Austin, Texas, and Warren, Michigan.

Additionally, GM resolved a legal dispute this month by agreeing to pay $12.75 million to settle a California lawsuit.

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The lawsuit, supported by the California Privacy Protection Agency, alleged that the automaker shared personal and driving data of OnStar subscribers without proper consent.