GM Outlines $400 Million Factory Investment in Mexico

General Motors Co. says it will spend $420 million to increase its production of small cars and transmissions in Mexico and retool for the latest generation of fullsize pickup trucks.

GM says the three projects will create 1,000 jobs. The expansion is part of a $900 million investment in Mexico the company announced last year.

GM will spend $120 million to add a production of the new Chevrolet Trax compact crossover vehicle at its factory in San Luis Potosi in the fourth quarter of this year. The Trax rides on the same platform as the Chevy Aveo subcompact (known as the Sonic in the U.S. and Canada) already made at the factory.

GM plans to publicly unveil the new model at the Paris auto show in September. The Trax will be sold in 140 countries but not in the U.S.

The company also says it will invest $100 million in a new transmission plant at the San Luis Potosi complex. GM did not offer details about the gearbox to be built there.

GM will spend $200 million at its assembly plant in Silao to prepare for the launch of the next generation of big pickups there early next year.