Valeo launches US$225 million high-tech manufacturing facility in McAllen, Texas

The industrial evolution of the Rio Grande Valley Region is entering a new phase with Valeo’s decision to establish an advanced manufacturing operation in McAllen, Texas. The project represents an investment of US$225 million and is expected to create up to 500 specialized jobs in technical, engineering, and operational roles.

More than a traditional expansion, the project introduces capabilities aligned with the global transformation of the automotive industry, where value is increasingly concentrated in software, electronics, and data processing. The new facility will focus on the production of central computing systems for vehicles, designed to integrate and manage multiple electronic functions within a unified architecture.

Advanced manufacturing aligned with software-defined mobility

The industrial complex, expected to exceed 300,000 square feet, is part of Valeo’s global strategy to strengthen its footprint in North America and respond to growing demand for software-defined vehicle (SDV) technologies.

This approach is reshaping vehicle architecture by replacing multiple independent modules with centralized systems capable of processing large volumes of data from sensors, cameras, and digital platforms.

The McAllen facility will play a key role in supplying technology for one of the world’s leading automakers, reinforcing integration between Tier 1 suppliers and OEMs in the development of next-generation electrical and electronic architectures.

Strategic location and binational integration

The decision to locate the plant in McAllen, Texas, reflects a combination of competitive advantages. Its proximity to northern Mexico’s industrial corridor enables integration within a highly specialized binational manufacturing ecosystem, while access to talent and collaboration with institutions such as University of Texas Rio Grande Valley and South Texas College supports workforce development aligned with industry needs.

During the announcement, Jeffrey Shay, President of Valeo North America, highlighted the strategic significance of the project:

“Today we are not just moving dirt. We are planting a flag of innovation… We are beginning a transformation in the way the world moves.”

He also confirmed that the company plans to invest US$225 million over the next five years in a 337,000-square-foot facility in McAllen.

At the local level, the project reflects a sustained investment attraction strategy led by public and private stakeholders aimed at positioning McAllen in higher-value manufacturing segments.

Elizabeth Suarez, President and CEO of the McAllen Economic Development Corporation, emphasized that the investment will bring advanced manufacturing, high-value job opportunities, and next-generation automotive technology to the region.

Supplying next-generation vehicle technology

The plant will manufacture central computing units for General Motors, liquid-cooled systems equipped with next-generation processors capable of handling large volumes of data from multiple vehicle systems to control critical functions.

This type of investment reflects a broader trend toward reshoring strategic processes in the United States, strengthening supply chain resilience and reducing operational risks.

Operations are expected to begin by late 2027, marking a turning point in the economic profile of the Rio Grande Valley. Beyond job creation, the introduction of manufacturing tied to software and advanced electronics opens the door to a more diversified, high-value industrial ecosystem.

About Valeo

Valeo is a global French company specializing in automotive technologies, with a focus on innovation, electrification, and digitalization. Its operations are structured around key areas such as electrification (POWER), electronics and software (BRAIN), and advanced lighting systems (LIGHT), along with a division dedicated to aftermarket and new mobility solutions.

With operations in 29 countries, approximately 100,000 employees, and a network of more than 140 production sites and dozens of R&D centers, Valeo plays a key role in the global automotive supply chain.

Valeo at a glance

• €20.9 billion in sales (2025)
• ~100,000 employees worldwide
• Presence in 29 countries
• 149 production plants
• 59 R&D centers
• 19 distribution platforms