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Published on : Mar 24, 2015

The automotive giant General Motors Co informed on Monday that the company is all set to build the next-generation of Chevrolet Cruze which will be a small car in the state of Mexico, as many other automotive organizations are tapping the market which has free trade agreements and can take benefits of the low labor cost.

The company further stated that they will invest an amount of around US$350 million for the production purpose of the Cruze which will be done in its plant in Coahuila. This amount will be a part of the US$5 billion investment which was announced in the previous year for the Mexican plants.

General Motors told that they will continue with the process of manufacturing of the small model Cruze in its plant in Lordstown, Ohio. The company has planned only three plants for the production of the next-generation Cruze, the third being in China.

The spokesman of General Motors in United States told that the plant in Gunsan- South Korea will be continuing with the production of the current model of Cruze which will take care of the demand and in domestic and international markets. Nevertheless, as per the new wage deal of last summer, General Motors will be start with the production of the next-generation Cruze in South Korea from 2017.

Many automotive entities are planning to enter the Mexican market owing to the low cost of labor and easy access to the American market. Apart from General Motors, Toyota is also finalizing the first passenger car assembly in the Mexican plant. Further, Volkswagen has also made an announcement of investing US$1 billion in its plant in Puebla.