Texas Border Business
By Roberto Hugo González / Texas Border Business
McAllen, Texas – Valeo, a global automotive technology company founded in France, announced a $225 million investment over five years to build a 337,000-square-foot advanced manufacturing facility in McAllen, with operations expected to begin in January 2027.
The company develops and manufactures automotive systems focused on electrification, driver assistance, and vehicle computing technologies. It operates globally as a supplier to major automakers and produces components that support safer, more connected, and more efficient vehicles.
According to the announcement, the McAllen plant will produce “central compute” units for General Motors, which the company described as the “brain of the vehicle” and a core element of next-generation mobility systems.
Valeo employs tens of thousands of people worldwide and maintains operations across Europe, Asia, and North America, including an established presence in the United States since 1980. The company currently operates multiple production sites and research and development centers across the country, with its North American headquarters in Troy, Michigan, and additional engineering activities in San Mateo, California. Its U.S. operations support the production of systems including electronics, thermal management, lighting, and driver assistance technologies.
Globally, Valeo operates in nearly 30 countries with a broad industrial footprint that includes production plants and research centers across Europe, Asia, and the Americas. Major manufacturing and engineering hubs are located in countries such as France and Germany, as well as in China, where the company produces a wide range of automotive electronics, electrification systems, and advanced driver assistance technologies. Valeo also maintains a significant presence in Mexico, supporting a cross-border automotive supply chain that serves North American manufacturers.
The McAllen site will employ approximately 300 people once operational. The facility represents a shift toward higher-value, technology-focused manufacturing, centered on integrated computing systems that combine hardware and software to support next-generation vehicles.
The company selected McAllen for the project, citing a skilled workforce, a supportive business environment, and coordination with local and state partners. It said the region’s readiness and access to talent were key factors in the decision, along with its strategic location near existing manufacturing activity along the U.S.-Mexico border.
Local industrial development efforts have also helped position the region for investment. CiL Capital, led by President and CEO Joaquin Spamer, has advanced site readiness in anticipation of increased nearshoring activity. The firm developed the Nearshoring Industrial Park in McAllen as part of a strategy to provide shovel-ready sites designed to meet the pace and requirements of manufacturers relocating operations closer to the U.S. market.
Valeo described the project as a long-term investment in South Texas, aimed at creating sustained career opportunities and strengthening workforce pipelines. The company said it intends to work with local institutions such as the University of Texas Rio Grande Valley and South Texas College to support training and employment pathways.
The investment was presented as part of Valeo’s bigger strategy to expand advanced manufacturing capabilities in North America and to support automakers with emerging vehicle technologies, particularly as the industry transitions toward software-defined, more highly automated vehicles.
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