General Motors Co (NYSE: GM) is now planning an investment of more than $1 billion in a Mexico manufacturing plant to make electric vehicles as early as 2023, much to the ire of the U.S. union supporting home production, CNBC reported on Thursday.

What Happened: GM is planning the investment in its Ramos Arizpe production complex that currently makes the Chevrolet Equinox and Chevrolet Blazer as well as engines and transmissions.

This is the U.S. automaker’s first such major electric vehicle announcement outside of the U.S. and Canada. The company has previously announced plans for two plants in Michigan and others in Tennessee and Ontario, Canada.

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GM didn’t provide details on the kind of electric vehicles it plans to produce at the facility or if it planned to ship to the U.S., just like the current arrangement.

Why It Matters: The announcement comes at a time when President Joe Biden’s administration is pushing automakers to increase American manufacturing, including EVs, the report said.

The announcement irked United Auto Workers Vice President Terry Dittes, who called it a “slap in the face” to the union members and U.S. taxpayers as the company is a beneficiary of government incentives to support EVs.

According to Dites, GM should make its vehicles in the United States, even those that are currently made in Mexico and then shipped to the country.

“Taxpayer money should not go to companies that utilize labor outside the U.S. while benefiting from American government subsidies. This is not the America any of us signed on for. Frankly, it is unseemly,” Dites said in the statement.

GM has set a target to offer at least 30 new EVs by 2025 under a $27 billion investment plan in the EV and the autonomous vehicles category — implying it will continue building new EV plants or convert those that it already owns.

Price Action: GM shares closed 3.38% lower at $56.57 on Thursday.

See Also: GM, LG Energy Invest $2.3B In Second US EV Battery Manufacturing Plant

Photo by Onasill Bill on Flickr

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