General Motors to make electric cars in Mexico from 2023

General Motors will from 2023 make electric vehicles in northern Mexico as part of an investment of over $1 billion that includes a new paint plant at its facility in the border state of Coahuila, the U.S. carmaker said on Thursday.

The high-tech paint plant will start operations from June at the Ramos Arizpe site, which currently assembles conventional internal-combustion vehicles, including the Chevrolet Equinox and Blazer models, along with engines and transmissions.

GM aims to build two Chevrolet electric SUVs at Ramos Arizpe starting in 2023, according to Sam Fiorani, who tracks future vehicle production for AutoForecast Solutions.

A GM spokesman said the company was not announcing or confirming the electric vehicles that will be built in Coahuila, describing Fiorani’s comment as speculation.

The automaker already makes electric vehicles at four locations in the United States and Canada.

GM’s Ramos Arizpe expansion will include new capacity to make batteries and other electronic components, which will begin during the second half of this year, the company said.

“I’m sure this investment will contribute to continue boosting Mexican manufacturing while bringing development to the region, the industry and the country,” said Francisco Garza, president of GM’s Mexican unit, during a webcast announcement.

Garza said he could not rule out adding a third production shift to the Ramos Arizpe facility in the near term, which would depend on meeting certain economic conditions.