GM investing $500M in Mexico plant

[ASUG8]

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.

Assembly of the vehicle, which wasn't named, is set to begin in the last quarter of 2011. GM plans for it to "give long-term viability to this plant by gradually substituting some production volumes."

Lieblein said General Motors has invested $4.1 billion in Mexico over the last four years.

http://online.wsj.com/article/BT-CO-201 ... 21411.html" onclick="window.open(this.href);return false;

[CID1990]

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.

Assembly of the vehicle, which wasn't named, is set to begin in the last quarter of 2011. GM plans for it to "give long-term viability to this plant by gradually substituting some production volumes."

Lieblein said General Motors has invested $4.1 billion in Mexico over the last four years.

http://online.wsj.com/article/BT-CO-201 ... 21411.html" onclick="window.open(this.href);return false;

A much more low-tech way to do this would be to produce a 6 cylinder engine and realize a 25% increase in fuel efficiency. Am I the only one who thinks this article was designed to fool idiots?

[ALPHAGRIZ1]

Whatever it takes to keep illegal Mexicans at home is fine with me. I wont ever buy another GM product since they cant run their business efficiently and profitably.

[BDKJMU]

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.

Assembly of the vehicle, which wasn't named, is set to begin in the last quarter of 2011. GM plans for it to "give long-term viability to this plant by gradually substituting some production volumes."

Lieblein said General Motors has invested $4.1 billion in Mexico over the last four years.

http://online.wsj.com/article/BT-CO-201 ... 21411.html" onclick="window.open(this.href);return false;

A much more low-tech way to do this would be to produce a 6 cylinder engine and realize a 25% increase in fuel efficiency. Am I the only one who thinks this article was designed to fool idiots?

Govt Motors has to respond to what people want, and that is 8 cylinders for their full size pickups and SUVs. Article from last week:
"Surprise: Sales of big SUVs surging faster than small cars"
http://www.usatoday.com/money/autos/201 ... 0_CV_N.htm" onclick="window.open(this.href);return false;

[93henfan]

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.

Assembly of the vehicle, which wasn't named, is set to begin in the last quarter of 2011. GM plans for it to "give long-term viability to this plant by gradually substituting some production volumes."

Lieblein said General Motors has invested $4.1 billion in Mexico over the last four years.

http://online.wsj.com/article/BT-CO-201 ... 21411.html" onclick="window.open(this.href);return false;

A much more low-tech way to do this would be to produce a 6 cylinder engine and realize a 25% increase in fuel efficiency. Am I the only one who thinks this article was designed to fool idiots?

Or go to a 6 cylinder diesel, which would have more torque and get 50% better mileage.

At any rate, it's great to see GM putting Mexicans back to work.

I'll stick to my American-made Hondas and soon to be (new plant in Chattanooga) VWs.

[Ivytalk]

A much more low-tech way to do this would be to produce a 6 cylinder engine and realize a 25% increase in fuel efficiency. Am I the only one who thinks this article was designed to fool idiots?

Or go to a 6 cylinder diesel, which would have more torque and get 50% better mileage.

At any rate, it's great to see GM putting Mexicans back to work.
I'll stick to my American-made Hondas and soon to be (new plant in Chattanooga) VWs.

You're killing me , 93! You're goddam killing me!

[CID1990]

A much more low-tech way to do this would be to produce a 6 cylinder engine and realize a 25% increase in fuel efficiency. Am I the only one who thinks this article was designed to fool idiots?

Or go to a 6 cylinder diesel, which would have more torque and get 50% better mileage.

At any rate, it's great to see GM putting Mexicans back to work.

I'll stick to my American-made Hondas and soon to be (new plant in Chattanooga) VWs.

And with bailout dollars, no less.

[AZGrizFan]

The exodus continues.

Haven't owned a GM product since I got rid of the Escalade. Won't own one again.

[Skjellyfetti]

Are there any American car companies that do not have a plant in Mexico?

[AZGrizFan]

Are there any American car companies that do not have a plant in Mexico?

Not if they want to make a profit and avoid some of the onerous regulations in America....

[Skjellyfetti]

Not if they want to make a profit and avoid some of the onerous regulations in America....

I agree on your point on profit... but, not avoiding regulations. Mexico is HIGHLY regulated. Companies have to pay STIFF penalties to fire employees, labor unions are more powerful than in the US, etc. Here's a summary:
http://www.mexconnect.com/articles/196- ... t-and-laws" onclick="window.open(this.href);return false;

[OL FU]

Are there any American car companies that do not have a plant in Mexico?

While there is nothing wrong with an American company investing in Mexico. I know you see the irony

[blueballs]

I wonder if the mexicans have to join the UAW and have part of their checks confiscated to be given to democratic politicians stateside.

[Skjellyfetti]

I wonder if the mexicans have to join the UAW and have part of their checks confiscated to be given to democratic politicians stateside.

Not UAW but Confederación de Trabajadores Mexicanos (85% of workers in private sector are members) and not Democratic politicians but PRI (Partido Revolucional Institucional) politicians.

[OL FU]

I wonder if the mexicans have to join the UAW and have part of their checks confiscated to be given to democratic politicians stateside.

Not UAW but Confederación de Trabajadores Mexicanos (85% of workers in private sector are members) and not Democratic politicians but PRI (Partido Revolucional Institucional) politicians.

A Rose by any other name...

[clenz]

The exodus continues.

Haven't owned a GM product since I got rid of the Escalade. Won't own one again.

Once TBH and I have the money to get rid of my current car (02 Buick) I will never again own a GM car.

[Skjellyfetti]

Not UAW but Confederación de Trabajadores Mexicanos (85% of workers in private sector are members) and not Democratic politicians but PRI (Partido Revolucional Institucional) politicians.

A Rose by any other name...

Exactly. blueballs and AZ are trying to blame US regulations and unions on American companies opening up factories in Mexico...... while Mexico has much stronger unions and regulations.

It's cheaper labor, plain and simple.

[Grizalltheway]

Honda, baby, Honda!

[AZGrizFan]

Not if they want to make a profit and avoid some of the onerous regulations in America....

I agree on your point on profit... but, not avoiding regulations. Mexico is HIGHLY regulated. Companies have to pay STIFF penalties to fire employees, labor unions are more powerful than in the US, etc. Here's a summary:
http://www.mexconnect.com/articles/196- ... t-and-laws" onclick="window.open(this.href);return false;

A Rose by any other name...

Exactly. blueballs and AZ are trying to blame US regulations and unions on American companies opening up factories in Mexico...... while Mexico has much stronger unions and regulations.

It's cheaper labor, plain and simple.

All that and the labor is STILL cheaper. Bottomline, it's cheaper to produce a vehicle/parts in Mexico.

[Skjellyfetti]

All that and the labor is STILL cheaper. Bottomline, it's cheaper to produce a vehicle/parts in Mexico.

I agree. Just don't say it's because of lack of unions or regulations.

[OL FU]

A Rose by any other name...

Exactly. blueballs and AZ are trying to blame US regulations and unions on American companies opening up factories in Mexico...... while Mexico has much stronger unions and regulations.

It's cheaper labor, plain and simple.

I once was buying a company in Mexico city for my employer. We were buying the company from probably one of the more honest people I had dealt with. After going over the typical reps and warranties we receive from sellers, he pulled me to the side and said, I really can't sign a document that says I haven't paid a bribe or a gratuity to a government worker. There is no way I would stay in business.

[OL FU]

All that and the labor is STILL cheaper. Bottomline, it's cheaper to produce a vehicle/parts in Mexico.

I agree. Just don't say it's because of lack of unions or regulations.

Unions importance when discussing costs is relative to the amount their labor costs increase above typical market pay. Mexican Labor unions are not relevant to this discussion or any comparison to US unions considering their lower rate of pay. Mexican regulations can be negated with the proper payments.

I am not sure how the car business works but one of the reasons Mexico has faired as poorly as it has after NAFTA is there were never able to get rid of the corruption. Many plants relocated out of or didn't go into Mexico because the cost and the pain of doing it.

[AZGrizFan]

All that and the labor is STILL cheaper. Bottomline, it's cheaper to produce a vehicle/parts in Mexico.

I agree. Just don't say it's because of lack of unions or regulations.

I've not mentioned "unions". I've mentioned LABOR.

[Skjellyfetti]

I agree. Just don't say it's because of lack of unions or regulations.

I've not mentioned "unions". I've mentioned LABOR.

You mentioned regulations. And that comment was directed at you and blueballs.

[BDKJMU]

The exodus continues.

Haven't owned a GM product since I got rid of the Escalade. Won't own one again.

Once TBH and I have the money to get rid of my current car (02 Buick) I will never again own a GM car.

I'll never buy a GM or Chrysler. For my next truck outside of Toyota Tundra (made in USA non union) or Nissan Titan (same) I would only consider the Ford 150.