GM flags concern over renewable energy in Mexico, sees investment risk

MEXICO CITY, Nov 19 (Reuters) – A senior executive of carmaker General Motors (GM) raised concern about the future of renewable energy usage in Mexico, saying that without a solid legal basis for it, automotive investment in Latin America’s no. 2 economy would suffer.

Francisco Garza, chief executive of GM Mexico, spoke as debate rages over a Mexican government proposal to give priority to the state-run power utility in the electricity market at the expense of private investors, particularly in renewable energy.

“Unfortunately, if the conditions aren’t there, Mexico won’t be a destination for investment, because the conditions won’t be given that permit us to meet our objective of having zero emissions in the long term,” Garza said.

Garza did not make explicit reference to the government’s electricity initiative, although others on the panel did.

After Garza spoke, GM Mexico spokesperson Teresa Cid told Reuters that GM was “at no time threatening” not to make the investments it had pledged for Mexico.

“GM must meet its (zero emissions) vision and we must follow that path,” she said. “So that’s where the risk would be.”

Reporting by Sharay Angulo; Editing by Sandra Maler
Source : Reuters