General Motors is reportedly planning to build its next-generation Chevrolet Cruze at Coahuila plant in Mexico.
The company is also planning to invest $350m for the production of the next generation small car, reported Reuters.
Previously, GM announced $5bn investment towards its Mexican plants and the latest announcement is a part of the project.
The Detroit based company will continue manufacturing Chevrolet Cruze at its Lordstown, Ohio facility.
GM has also reportedly identified three plants globally, including one in China for the production of the next generation Cruze.
The publication also cited a GM spokesman as saying that the vehicle will also be produced in Gunsan, South Korea to meet the international and domestic demand.
According to reports, automakers are flocking towards Mexico due to cheap labor cost and easier access to the US market.
Other companies including Toyota and Volkswagen have made significant investment in the country on manufacturing facilities.
