Valeo broke ground on a new manufacturing facility in McAllen, Texas. The company is investing $225 million over the next five years to build a 337,000 square-foot plant that is expected to create up to 500 new jobs in the region. Production is scheduled to begin in late 2027.
The facility will produce General Motors’ central compute unit, a liquid-cooled system powered by next-generation processors. These units process data from multiple sensors and systems to control essential vehicle functions. The project supports the industry shift toward software-defined vehicles and aligns with Valeo’s “Elevate 2028” strategic plan.
Kristin Toth, Purchasing Executive Director for Electrical Systems, Software and Connectivity at General Motors, stated that a software-defined vehicle architecture enables improvements in customer experience through faster connectivity, richer entertainment options, and more frequent updates. She noted that projects such as Valeo’s plant in Texas will support bringing next-generation electrical architecture to market.
Jeffrey Shay, Valeo North America President, said the company is contributing technologies for next-generation software-defined vehicles with this investment in Texas and expressed appreciation for the opportunity to expand its business with General Motors in the state.
The new U.S. facility represents one of the largest orders in Valeo’s history.
