Valeo has begun construction of a new $225m manufacturing facility in McAllen, Texas, as the automotive supplier expands its US footprint to support the shift towards software-defined vehicles.
Investment aligned with software-driven vehicle transition
The 337,000 sq ft site is scheduled to begin production in late 2027 and will create up to 500 jobs in the region over the next five years.
The investment forms part of Valeo’s “Elevate 2028” strategy and is tied to one of the largest orders in the company’s history, reflecting growing demand for advanced vehicle electronics and computing systems.
At the McAllen facility, Valeo will manufacture central compute units for General Motors—an increasingly critical component in modern vehicle architectures.
Supporting next-generation vehicle architectures
The systems to be produced are liquid-cooled and powered by next-generation processors, designed to handle large volumes of data from sensors and onboard systems. These central compute units act as the “brain” of software-defined vehicles, enabling real-time control of key functions.
The shift towards this architecture is seen as a cornerstone of the automotive industry’s transformation, enabling enhanced connectivity, over-the-air updates, and more advanced in-vehicle experiences.
Kristin Toth, Purchasing Executive Director for Electrical Systems, Software and Connectivity at General Motors, said the project would support the rollout of its next-generation platforms.
“A software-defined vehicle architecture is a key enabler to dramatically improve the customer experience through faster connectivity, richer entertainment options and more frequent updates.
“Projects such as Valeo’s plant in Texas will play a crucial role as we bring our next-generation electrical architecture to market.”
– Kristin Toth, Purchasing Executive Director for Electrical Systems, Software and Connectivity at General Motors.
Expanding US manufacturing footprint
The new facility strengthens Valeo’s manufacturing presence in North America while deepening its relationship with General Motors.
Jeffrey Shay, President of Valeo North America, said the investment reflects both technological and regional growth ambitions.
“We’re proud to contribute technologies that enable the next generation of software-defined vehicles with this significant investment in the region and the future of automotive technology.
“We’re grateful for the opportunity to grow our business with GM in the state of Texas.”
– Jeffrey Shay, President of Valeo North America.
Regional and industry impact
The McAllen site underscores the continued localisation of advanced automotive manufacturing in the US, particularly as automakers and suppliers invest in electrification, digitalisation, and software-led vehicle platforms.
As vehicles become increasingly defined by software and computing capability, facilities such as Valeo’s Texas plant are expected to play a central role in delivering the hardware required to support this shift.
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