General Motors announced Wednesday that it will invest $691 million to boost its operations in Mexico, a nation whose low wages and proximity to the United States are increasingly attracting automakers.
Mexican President Enrique Pena Nieto hailed the announcement at his official residence, saying "this is good for this company's business plans, but it is also good for the country, because it shows trust and because it creates jobs."
GM said $349 million will be allocated for a new plant to build eight-speed transmissions in the central city of Silao, $211 million to expand its complex in Toluca, near Mexico City, and $131 million to expand a next-generation transmission factory in San Luis Potosi.
"GM is about to reach 78 years in Mexico and we celebrate it with this new investment, which means more employment and development opportunities for the regions of Silao, San Luis Potosi and Toluca," said General Motors de Mexico president Ernesto Hernandez.
The investment will also mean "more advanced technology that will benefit our customers," Hernandez said alongside Pena Nieto.
Mexico is the world's eighth largest producer of automobiles and it became the fourth biggest exporter last year.
Some 2.8 million vehicles were made here last year, including 571,000 by GM, according to the Mexican Automobile Industry Association.