General Motors is moving more production into Mexico as tariffs and trade pressure reshape the auto industry. The company says the Chevrolet Groove and Aveo will be assembled locally starting in 2027, with Ramos Arizpe, Coahuila, playing a larger role in the plan. The move affects two high-volume models sold in Mexico and comes as automakers adjust to higher costs on vehicles imported from China and other countries without trade agreements.
General Motors to assemble Aveo and Groove in Mexico
General Motors will begin assembling the Chevrolet Groove and Chevrolet Aveo in Mexico in 2027, shifting production of two high-volume models that have been imported from Asia.
The project is part of a $1 billion investment in Mexico for 2026 and 2027. The company expects the program to reach about 80,000 vehicles a year by 2030.
The vehicles will be assembled at the company’s complex in Ramos Arizpe, Coahuila, for sale in the Mexican market. The Groove is expected to start first, with the Aveo added later.
Trade pressure pushes production closer to the market
The decision comes as Mexico applies higher tariffs to vehicles and other goods imported from countries without free trade agreements. That includes China, where the Aveo and Groove have been sourced.
Those tariffs changed the cost structure for models aimed at price-sensitive buyers. For automakers, importing compact cars and small SUVs from Asia has become more difficult under the new trade rules.
GM’s move brings final assembly closer to the market where the vehicles are sold. The company has said the parts will still come from China, even as local assembly shifts to Mexico.
Ramos Arizpe gains another production role
The Ramos Arizpe plant already has a major place in GM’s Mexico operations. The company produces electric vehicles there and has used the Coahuila complex for other key manufacturing programs.
The new project gives the plant another domestic-market assignment after a difficult period for some parts of the operation. Earlier this year, GM cut about 1,900 jobs at Ramos Arizpe, citing weaker demand for electric vehicles in North America.
GM also said last year that gas-powered Chevrolet Blazer production would move from Ramos Arizpe to a U.S. plant. The Aveo and Groove plan does not erase those earlier changes, but it gives the Mexican operation a new production program tied to local demand.
A shift aimed at Mexico buyers
The Aveo is one of GM’s strongest-selling vehicles in Mexico. It sold more than 60,000 units in the country in 2025 and remains one of the company’s most important models in the local market.
For residents in Mexico, the production change is worth watching because tariffs, exchange rates, and logistics can affect vehicle prices. Local assembly does not guarantee lower prices, but it can reduce some pressure from import costs.
The announcement also fits into a wider shift in North American manufacturing. Automakers are adjusting production plans as tariffs, USMCA review talks, and China-related trade pressure affect where vehicles are built.
