The 2016 Chevrolet Cruze compact will be produced at General Motors’ Ramos Arizpe plant in Mexico, according to a new report from Reuters.
Previously, Chevy had invested $270 million in GM’s Lordstown plant in Ohio, as this plant is already responsible for manufacture of the Cruze in the United States. However, this new expansion reportedly involves a further investment of $350 million, and the report adds that majority of the Cruze sedans manufactured in Mexico are meant for the country’s consumers. This is different from the present setup, where Cruzes intended for the Mexican market are imported from South Korea. In any case, the new arrangement allows GM to save money due to cheaper labor and free trade.
The report wasn’t specific on whether the new investment would be to add new capacity to the plant, or whether it represents a reallocation of funds for the Cruze manufacture. The Ramos Arizpe plant presently handles manufacture of several other GM vehicles, including the Chevrolet Sonic and Captiva Sport, and the Cadillac SRX. In 2014, a total of 173,400 units were produced in that plant, with 87 percent of these units manufactured for export.