Valeo Launches $225M Advanced Manufacturing Plant in McAllen, Texas

Valeo is advancing the industrial evolution of the Rio South Texas Region with the construction of a $225 million high-tech manufacturing facility in McAllen, expected to create up to 500 specialized jobs in engineering, technical, and advanced operations.

Spanning more than 300,000 square feet, and ultimately reaching 337,000 square feet, the new plant will produce central computing systems for software-defined vehicles, integrating multiple electronic functions into a unified architecture. These systems are designed to process large volumes of data from sensors, cameras, and digital platforms, reflecting the global shift toward software, electronics, and data-driven automotive innovation.

The facility will play a key role in supplying technology to General Motors, manufacturing liquid-cooled central computing units equipped with next-generation processors to manage critical vehicle functions.

During the announcement, Jeffrey Shay, President of Valeo North America, emphasized the long-term vision behind the investment:

“Today we are not just moving dirt. We are planting a flag of innovation… we have planned an investment of $225 million over the next five years.”

Elizabeth Suarez, President and CEO of the McAllen Economic Development Corporation, highlighted the project as a major milestone that will bring advanced manufacturing, high-quality jobs, and next-generation automotive technology to the region.

Strategically located within a binational ecosystem, McAllen benefits from proximity to Northern Mexico’s industrial corridor, as well as strong talent pipelines supported by institutions such as University of Texas Rio Grande Valley and South Texas College.

Operations are expected to begin by late 2027, reinforcing a broader trend of reshoring strategic manufacturing into the United States while strengthening supply chain resilience.

About Valeo

Valeo is a global automotive technology leader headquartered in France, focused on electrification, software systems, and advanced mobility solutions. With €20.9 billion in sales in 2025, approximately 100,000 employees, operations in 29 countries, 149 production plants, 59 R&D centers, and 19 distribution platforms worldwide, the company continues to expand its footprint in North America aligned with the rise of software-defined vehicles.

Expanding your operations into the United States is no longer just about location, it’s about strategy, certainty, and long-term growth.

The Rio South Texas Region, in collaboration with COSTEP -Council for South Texas Economic Progress-, offers a unique platform where companies can operate within the U.S. economic and legal framework while remaining seamlessly connected to Mexico’s industrial base.

Explore opportunities and start your expansion journey today at https://riosouthtexasregion.com

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