A French automotive technology company has big plans for deep South Texas — one that represents at least $225 million in investment and is expected to create at least 500 jobs.
Officials in McAllen, the second-largest city in the Rio Grande Valley, excitedly announced that global automotive technology company, Valeo, will soon build a new manufacturing facility in the South Texas border city.
The company, which is headquartered in Paris, France, will build a next generation “software-defined vehicle platform” for American automotive giant, General Motors, at the McAllen facility. Production is expected to begin in late 2027. The facility will position the Valley on the cutting edge of automotive technology as Valeo is expected to produce a centralized computing platform that will pair artificial intelligence with wireless updating capability in a smaller, more unified control unit.
“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,” said Jeffrey Shay, president of Valeo North America.
Valeo described the platform as a “liquid-cooled system powered by next generation processors” that will be able to handle data from “multiple senators and systems to control essential functions.”
Though Valeo declined to release product specifications or images, GM revealed details about the new technology in October. The new centralized computing platforms will be included in the company’s electric and gas-powered vehicles, beginning with the 2028 model of Cadillac Escalade IQ. The platforms will make use of NVIDIA’s Thor AI that will allow key systems within GM vehicles to be connected to a centralized control system. That includes propulsion, steering, breaking, infotainment and safety. Ultimately, the units will allow GM vehicles to “learn and improve throughout their lifetime,” the company said in an October 22, 2025 news release.
“GM vehicles will be always connected, awake, and available, with near-instant responsiveness to remote commands,” GM officials said.
“Valeo’s investment represents a major milestone for the Rio Grande Valley and reinforces our region’s capacity to support advanced manufacturing at a global scale,” Hidalgo County Judge Richard F. Cortez said.