Sharay Agulo

MEXICO CITY (Reuters] – An executive at General Motors (NYSE) expressed concerns about Mexico’s future renewable energy use. He said that without a legal framework, Latin America’s top automaker would not be able to continue its investment. 2. economy will suffer.

Francisco Garza is the chief executive officer of GM Mexico. He spoke during a debate over a Mexican proposal that the government give preference to the state-run electricity utility on the electricity market, at the expense private investors in renewable energy.

Garza participated in an international panel discussion in Mexico City. He stated that Mexico must create conditions for investment in renewables. This is something to which his company has been committed.

Garza stated that Mexico will not be an investment destination if it doesn’t have the right conditions. “Unfortunately,” Garza explained.

“We’re looking at that if there aren’t the conditions that we need, that dollar which was to be invested Mexico in Mexico will move to the United States or Brazil, China, Europe and Mexico will not be a top destination,” he said.

Garza didn’t make any explicit mention of the government’s electric initiative. However, others on the panel made that reference.

GM, which has been one of the top investors in Mexico since the start of the North American Free Trade Agreement in 1994, earlier this year said it planned to invest $1 billion https://www.reuters.com/business/autos-transportation/general-motors-make-1-bln-electric-auto-investment-mexico-2021-04-29 to build electric vehicles in the northern state of Coahuila.

After Garza had spoken, Teresa Cid, spokesperson for GM Mexico told Reuters that GM Mexico “at no point threatening not” to invest in Mexico.

“GM must reach its (zero emission) vision” and the company must continue on that track, she stated. “So, that’s where we would run into the most risk.”