U.S. carmaker General Motors Co. is making an investment of $120 million in a plant in the central state of San Luis Potosi to produce the Chevrolet Trax. A further $200 million would head to the Silao plant in Guanajuato state, where work on a new generation of pickups would begin in 2013. GM Mexico president, Ernesto Hernandez informed that the investments would create 1,000 new jobs.

The Detroit based company is the not the first car company to invest in Mexico. In recent times major companies such as Nissan has made huge investments in the country. Mexico is growing to be the darling of investors as the time is ripe for maximum benefits. The economic situation is on the path of recovery, demography is promising and even peso is gaining strength. In such a situation, Mexico is ready to offer the best returns in any kind of investment be it manufacturing or Mexico real estate

Trax would be built on the same underpinning platform as the Aveo and Sonic subcompact sedan and sold in 140 countries, but not the United States. The SUV crossover would be displayed at the Paris Motor Show in September before hitting the Mexican market in the fourth quarter. The Sonic is sold in the U.S. and Canadian markets while the Aveo sells to the rest of the world.

The Silao, Mexico plant joins plants in Fort Wayne, Indiana; Flint, Michigan; and Arlington, Texas in producing the Chevrolet Silverado and GMC Sierra trucks and their truck-based SUV counterparts.