By KELIN DILLON

On Wednesday, Jan. 29, Mexican Secretary of the Economy Marcelo Ebrard announced that General Motors (GM) will not relocate its production outside of Mexico, despite potential adjustments to its operations in the United States due to looming tariff threats from the administration of U.S. President Donald Trump.

Ebrard’s comments followed a statement from GM President and CEO Mar Barra, who indicated that the company might shift part of its vehicle production from Mexico and Canada back to the U.S. if the threatened 25 percent tariffs on Mexican goods are imposed by Trump, a move he believes would bolster the U.S. manufacturing sector. 

In response, GM has reiterated its commitment to its Mexican plants. 

“Nobody is going to leave Mexico because the most productive car manufacturing plants are here; it would be very expensive,” Ebrard asserted during the 85th Annual Assembly of the American Society (Amsoc) of Mexico, which brings together American businessmen operating in the country.

The Economy Secretary emphasized that GM plans to utilize idle capacities in the U.S. but will not abandon its extensive operations in Mexico. 

“They are going to take advantage of capacity that they do not have in the United States,” he explained, referencing a recent visit to GM’s headquarters in Detroit.

Barra mentioned during the company’s recent financial results presentation for 2024 that GM possesses the capacity in the U.S. to handle some of the truck production currently done in Mexico and Canada. 

Likewise, the GM CEO expressed hope that tariffs would not be implemented, noting that Mexican President Claudia Sheinbaum is actively engaging in discussions to address migration and other issues that could influence these decisions.

Ebrard also highlighted growing investor confidence in Mexico, pointing to recent commitments by multinational companies, including Swiss firm Nestlé, which has pledged over one billion dollars in investment, and American company Medline, which plans to invest 250 million dollars in a new production facility in northern Mexico. 

“In short, I am optimistic that we will get through this because of the strength of this economy,” said Ebrard.

 In a related development, GM Canada President Kristian Aquilina warned that Trump’s tariff threats could jeopardize American economic interests by disrupting supply chains and increasing consumer prices. 

“It is a disruption that benefits no one, especially the United States,” Aquilina said in an interview with U.S. publication Bloomberg.