Saturday, November 27

GM requires legal conditions to continue investing in Mexico

GM requests a solid legal basis in Mexico regarding the use of renewable energy.


Francisco Garza, CEO of General Motors Mexico, expressed the company concern for the future of renewable energy use in Mexico and said that without a solid legal basis for it, auto investment would be in jeopardy in Latin America, Reuters reported.

“Unfortunately, if the conditions are not met, Mexico will not be an investment destination, because the conditions that allow us to meet our goal of having zero emissions in the long term will not exist.”

Francisco Garza, CEO of GM Mexico.

Several American businessmen have expressed concern about the Mexican government reforms to favor parastatals without respecting the T-MEC agreements, and this time GM spoke out.

Garza’s opinions are given in the framework of a debate on the proposal of the government Andrés Manuel López Obrador (AMLO) to give priority to the Federal Electricity Commission (CFE) in the electricity market at the expense of private investors, particularly in renewable energy.

Francisco Garza’s statements were made at a panel in Mexico City, where the executive pointed out that it is important for the country to forge the conditions that allow investment in renewable energies, an issue with which the company itself is committed.

“We are evaluating that if the conditions are not met, that dollar that was going to be invested in Mexico will go to the United States, Brazil, China or Europe, and Mexico will cease to be a key destination.”

Francisco Garza, CEO of GM Mexico.

Although Garza did not make explicit reference to the Mexican government’s electricity initiative, it should be noted that other members of the panel did.

The assembly company General Motors has been one of the main investors in Mexico since the beginning of the old North American Free Trade Agreement (NAFTA) in 1994. The company announced earlier this year that it planned to invest billion dollars in a plant in Coahuila to build electric cars.

After the participation of Garza, the spokesperson of GM Mexico, Teresa Cid, clarified to Reuters that GM “at no time threatened” with not making the investments promised for Mexico, but clarified that the company must comply with its vision of zero emissions and that is where the risk lies.

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