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Friday, December 3, 2021

GM Sees Concerns Over Renewables In Mexico And Sees Investment Risk

MEXICO – A senior executive at auto maker General Motors (GM) raised concerns about the future of renewable energy in Mexico, saying that without a strong legal framework, auto investment in Latin America’s No. 2 economy will suffer.

Francisco Garza, CEO of GM Mexico, came out on top of a heated debate over the Mexican government’s proposal to prioritize the state-owned energy company in the electricity market at the expense of private investors, especially in the renewable energy sector.

In a panel discussion in Mexico City, Garza said that it is important for Mexico to create an environment that allows investment in renewable energy, to which the company itself is committed.

“Unfortunately, if there are no conditions, Mexico will not become a place for investment, because conditions will not be created that would allow us to achieve our goal of zero emissions in the long term,” said Garza.

“We estimate that if there are no conditions, the dollar that was supposed to be invested in Mexico will go to the US, Brazil, China or Europe, and Mexico will no longer be a key destination,” he said. added.

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Garza did not explicitly mention the government’s electricity initiative, although other panelists did.

GM, which has been one of the largest investors in Mexico since the North American Free Trade Agreement in 1994, said earlier this year that it plans to invest $ 1 billion in electric vehicles in the northern state of Coahuila.

After Garza’s speech, GM Mexico spokeswoman Teresa Sid told Reuters that GM “never once threatened” to backtrack on the investment it had promised for Mexico.

“GM must fulfill its [zero emissions] vision, and we have to walk this path, ”she said. “So this is where the risk is.”

Author: Sharay Angulo

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