General Motors announced on Wednesday a US $1 billion investment in its Mexican production operations over the next two years, underscoring the automaker’s long-term commitment to the country where its market share is higher than 12%. 

The announcement came soon after U.S. President Donald Trump seemingly expressed scorn for the Mexican automotive industry, calling  the United States-Mexico-Canada Agreement (USMCA) “irrelevant” and asserting that the U.S. does not need cars manufactured in Mexico. 

GM President Mark Reuss countered by saying that the company’s supply chain remains integrated across the three countries involved in the USMCA, which is currently the subject of a formal review

In an official statement, Francisco Garza, president and CEO of GM México, said the automaker’s “solid results” in 2025 reaffirm its commitment to offering innovation, quality and value in every vehicle.

While anticipating a challenging year ahead, Garza said GM México “will adapt our strategy to respond to the evolving needs of our customers.” 

He added, “As part of this new strategy, and in line with the Mexican government’s efforts to strengthen the domestic market, we will invest US $1 billion over the next two years in our local manufacturing operations and continue working on future projects focused on domestic demand, reinforcing our long-term commitment to Mexico.” 

GM’s strategy aims to align with President Claudia Sheinbaum’s Plan México whose goal is to strengthen the domestic market by fomenting a strategy based on assembly and infrastructure tailored to the needs of the Mexican consumer.

The company did not identify specific manufacturing projects in Mexico, saying they will be announced later. 

Illustrating the solid results mentioned by Garza, in December alone GM México sales registered an increase of 11.2% compared to December 2024. 

The company also finds itself as the leader in key market segments:

•  A 78.8% market share in large SUVs, driven by sales of the Chevrolet Suburban, Chevrolet Tahoe and GMC Yukon.
• Its Chevrolet Tornado Van leads sales for small vans with a 52.7% market share.
• Its large luxury SUVs — Cadillac Escalade, Cadillac Escalade IQ/IQL and GMC Hummer EV — boast  39% of market share.
• Its compact pickups, led by the Chevrolet Montana, have a 38.5% market share.

GM is the largest manufacturer of combustion and electric vehicles in Mexico and is the main exporter. It sold 198,153 units in 2025, second only to Nissan (274,661 units sold).

With reports from El Economista, El Financiero and De Último Minuto