Stock Markets May 19, 2026 05:06 PM

GM to Move Assembly of Chevrolet Groove and Aveo to Mexico While Keeping Parts Production in China

Ramos Arizpe plant to begin local assembly in 2027 as part of GM's $1 billion Mexico investment; parts supply remains China-based

By Caleb Monroe GM

General Motors will start assembling the Chevrolet Groove and Aveo at its Ramos Arizpe factory in Mexico beginning in 2027 for sale in the Mexican market, while continuing to source component production from China. The initiative, unveiled at an event with Mexico's President Claudia Sheinbaum, is part of GM's previously announced $1 billion investment in Mexico and targets an annual output of 80,000 vehicles by 2030.

GM to Move Assembly of Chevrolet Groove and Aveo to Mexico While Keeping Parts Production in China
GM

Key Points

  • GM will start assembling the Chevrolet Groove and Aveo at its Ramos Arizpe plant in Mexico in 2027, aiming to produce 80,000 vehicles annually by 2030 - impacts the automotive manufacturing sector.
  • The Aveo is one of Mexico's top-selling cars and was GM's best-selling car in Mexico with more than 60,000 units sold in 2025; sales are on pace for another record this year - relevant to retail auto sales and consumer demand tracking.
  • GM will keep producing vehicle parts in China while shifting final assembly to Mexico, affecting cross-border supply chains and trade flows in the auto parts and manufacturing sectors.

General Motors announced that it will begin local assembly of the Chevrolet Groove and the Chevrolet Aveo at its Ramos Arizpe plant in Mexico, with production for sale in the domestic market scheduled to start in 2027. The company said it will continue to manufacture the vehicle parts in China and maintain that cross-border flow of components even as final assembly shifts to Mexico.

The move was presented at an event attended by Mexico President Claudia Sheinbaum and forms part of GM's previously disclosed $1 billion investment in the country. GM has been importing these models and other vehicles into Mexico from its operations in China, where the automaker has experienced declining sales in recent years.

  • Local production timeline: Assembly at Ramos Arizpe is expected to begin in 2027, with a production target of 80,000 vehicles per year by 2030.
  • Model performance in Mexico: The Aveo is among the top-selling cars in Mexico and is GM's single best-selling car in that market. GM reported selling more than 60,000 Aveos in Mexico in 2025, and said sales are on pace to hit another record this year.
  • Manufacturing context at Ramos Arizpe: The plant has previously assembled electric vehicles. Earlier this year GM cut 1,900 jobs at the facility, citing weak U.S. demand, and the company indicated last year that production of the gas-powered Chevrolet Blazer would be moved from Ramos Arizpe to a U.S. manufacturing site.

The announcement signals a shift in where GM will complete final assembly for these models sold in Mexico, while preserving the existing parts-production relationship with China. The company did not provide additional operational or financial details in its statement beyond the production timeline, the 80,000-unit target for 2030, and the fact that component manufacturing will remain China-based.

GM's earlier decisions about Ramos Arizpe - including prior electric vehicle production, the workforce reduction of 1,900 employees, and the relocation of Blazer assembly to the United States - were reiterated in the company's briefing, underscoring ongoing adjustments at the plant amid shifting demand patterns.

Company executives framed the plan as part of the larger investment program in Mexico, announced previously, while noting that the cars will be assembled locally for sale in the Mexican market beginning in 2027. No additional forecasts or projections were provided beyond the sales figures for the Aveo in 2025 and the statement that current-year sales are on pace for another record.

Risks

  • Demand uncertainty - GM cited weak U.S. demand earlier this year when it cut 1,900 jobs at Ramos Arizpe, highlighting the potential for demand-driven disruptions to production and employment in the auto manufacturing sector.
  • Supply-chain dependency - continuing to produce parts in China while assembling vehicles in Mexico maintains reliance on international component flows, which could introduce logistical or trade-related risks for the automotive supply chain.
  • Operational adjustments - the prior decision to relocate production of the gas-powered Chevrolet Blazer from Ramos Arizpe to a U.S. plant and recent layoffs indicate ongoing restructuring risks for workforce and capacity planning in manufacturing.

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