General Motors To Invest $500M In Mexico Plant

jason

Administrator
Staff member
MEXICO CITY (Dow Jones)--U.S. automobile giant General Motors Co. said Tuesday it plans to invest close to $500 million in its Ramos Arizpe plant in northern Mexico to produce a new line of engines as well as a new vehicle.

Of that amount, the company is investing $284 million to manufacture eight-cylinder engines with spark-ignition direct-injection technology, known as SIDI, Grace Lieblein, chief executive of GM de Mexico, said at an event.

"We estimate that these technologies allow for a 9% improvement in fuel efficiency from current engines," Lieblein said, adding that the investment will directly create 390 jobs in Coahuila state, where Ramos Arizpe is located.

Another $215 million will go toward upgrading the factory's production lines to build a new vehicle for the domestic and international markets, she said, noting that the investment will be key to maintaining 400 jobs.


more http://online.wsj.com/article/BT-CO-20100803-721411.html
 

Ticking

New Member
Okay, let's do the math. They want to invest 284 million dollars to double a workforce of 400, and add approximately 1.8 mpg on a vehicle. Then another 214 million on a new line that they don't even know what it is yet. And people wonder wonder why these businesses go belly up. They're spending way too much on too little.
 

lauren

New Member
I wonder if they are thinking location will be easier so they can pay locals less than what someone in the US would want for that line of work? It would not be the first time a company has tried it.
 
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