GM flags Mexico’s renewable energy concerns and sees investment risk

Mexico City — Senior executive at automaker General Motors (GM) has expressed concern about the future of renewable energy use in Mexico, and without a solid legal basis for it, to Latin America’s second economy. He said car investment would suffer.

Francisco Garza, CEO of GM Mexico, said discussions have intensified on the Mexican government’s proposal to prioritize state-owned utilities in the electricity market at the expense of private investors, especially renewables. ..

Garza joined the Mexico City panel and said it was important to put in place the conditions that would allow Mexico to invest in renewable energy.

“Unfortunately, if the conditions aren’t right, Mexico isn’t an investment destination because it doesn’t provide the conditions to reach the goal of achieving zero emissions in the long run,” Garza said.

“Unless the conditions were met, the dollar, which was to be invested in Mexico, would go to the United States, Brazil, China, or Europe, and we value Mexico as no longer a major destination,” he said. Says. Added.

Garza did not explicitly mention the government’s electricity initiative, but other members of the panel did.

GM, one of Mexico’s top investors since the inception of the North American Free Trade Agreement in 1994, said it plans to invest $ 1 billion to build electric vehicles in northern Coahuila earlier this year. ..

After Garza spoke, GM Mexico spokesman Teresaside told Reuters that GM “never threatened” to not make the investment promised to Mexico.

“GM needs to meet that [zero emissions] Vision and we have to follow that path, “she said. “That’s the place of risk.”

By Sharay Angulo