Thought this was worth posting. I hope that this helps GM achieve better margins on the next Aveo instead of importing them from South Korea (I know the article says it's for Latin American consumption, but would think we could get production for Canada and the US as well, no?).
MORE HEREGM dedicates Mexico complex that will build Aveo
July 30, 2008 - 11:51 am ET
SAN LUIS POTOSI, Mexico -- General Motors today dedicated its new $1.03 billion manufacturing complex here, as it begins assembling Chevrolet Aveo compact cars for Latin America.
The 855-acre site, 260 miles northwest of Mexico City, can produce as many as 30 vehicles an hour, Kevin Williams, president of GM Mexico, said in a speech.
A GM press release in Spanish said San Luis Potosi combines flexibility and versatility. Unlike others, "it can support (the assembly of) future products, when required."
The site also has a stamping plant equipped with the "most advanced manufacturing processes, technologically speaking," of any GM factory, according to the company.
GM will start manufacturing transmissions at the plant in the first half of 2009, Williams said.
The Aveos assembled here will be sold in Mexico and exported to South America.
Fitted with a 1.6-liter engine, the San Luis Potosi Aveo comes in three versions -- two of them with a five-speed manual transmission and one with a four-speed automatic.
Williams, who spoke in Spanish, said the complex employs 2,500 workers. Its suppliers employ an additional 17,500 people.
He said about 80 companies from the state of San Luis Potosi already supply GM. A dozen more have moved into the region because of the new complex.
"Others are in the process of concluding negotiations with the local government. We're happy to contribute to the generation of jobs and the area's economic growth," Williams said.
San Luis Potosi straddles one of the main land routes between Mexico City and the United States, Williams pointed out.
He said both Mexico's federal and state governments had helped the project by improving the region's highways, bridges and railway lines.
Mexico President Felipe Calderon and Troy Clarke, president of GM North America, were among those at the ceremony.
In a statement, Clarke said the San Luis Potosi operation recycles 90 percent of the water it uses. The remaining 10 percent evaporates, meaning that no water from the complex enters San Luis Potosi's municipal drainage system.