General Motors (GM-US) announced on Thursday (29) that it plans to invest more than $1 billion in Mexico to produce electric cars. However, the move has caused dissatisfaction from the United Auto Workers (UAW), arguing that this is certainly a slap in the face for U.S. taxpayers.
GM first announced to produce electric vehicles in Mexico Ramos Arizpe plant, in the previous, the company has determined to invest billions of dollars in the United States and Canada for electric vehicle production.
GM said the plant in Mexico will produce at least one electric vehicle starting in 2023, though the company declined to say which one it will produce there. Currently, the plant and its supporting facilities produce the Chevrolet Equinox and Chevrolet Blazer, as well as engines and transmissions.
UAW Vice President Terry Dittes said GM’s investment would be a “slap in the face” to union members and U.S. taxpayers, however, as the Biden administration had just previously strongly urged U.S. automakers to increase manufacturing in the United States, including electric vehicles. GM had previously lobbied the government for electric vehicles along with other car manufacturers.
At a time when GM is asking the U.S. government to make major investments such as subsidies for electric vehicles, it’s a slap in the face not only to AFL-CIO members, but to the American taxpayer and the American workforce,” Dittes said.
In addition, he also said that U.S. taxpayer money should not have to go to companies that use labor outside the U.S., but also enjoy U.S. government subsidies.
The report states that GM is expected to become an automaker specializing in supplying electric vehicles by 2035, and that the company will also continue to build factories or convert existing production lines to electric vehicle production around the world. It is estimated that by 2025, GM will invest $27 billion in electric and self-driving vehicles, including at least 30 new electric vehicles.