Valeo Breaks Ground on US$225 Million Plant in McAllen, Texas
Valeo has begun construction on a manufacturing plant in McAllen, Texas, into which it will invest US$225 million over the next five years and which will create 500 jobs once it reaches full capacity.
The facility, which will feature the most advanced manufacturing processes, will focus on fulfilling one of the largest orders for central computing units (CCUs) in the history of this Tier 1 automotive supplier, with General Motors as the end customer.
These units are distinguished by a liquid cooling system and state-of-the-art processors that process large amounts of data from multiple sensors and systems to control essential functions.
According to the French company, the 337,000-square-foot plant will begin initial production testing in the second half of 2027 and is part of Valeo’s “Elevate 2028” strategic plan, which aims to drive the automotive sector’s transformation toward software-defined vehicles.
At the groundbreaking ceremony, Kristin Toth, General Motors’ executive director of Electrical Systems, Software, and Connectivity Purchasing, said that a software-defined vehicle architecture is a key factor in significantly improving the consumer experience through faster connectivity, more varied entertainment options, and more frequent updates.
“Projects like Valeo’s plant in Texas will play a crucial role as we bring our next-generation electrical architecture to market,” he said.
Jeffrey Shay, president of Valeo North America, said he was proud that Valeo is contributing technologies that will pave the way for the next generation of software-defined vehicles with this significant investment in the region.
“We appreciate the opportunity to grow our business with GM in the state of Texas,” he said.
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