Tesla, Kia Supplier Moves Manufacturing Operations from South Carolina to Mexico

Gentherm will expand its operations in the northern Mexican city of Monterrey as part of its plan to improve its financial performance

A Kia Motors plant in Mexixo's Nuevo León state.
By Bloomberg Línea
September 19, 2023 | 09:41 PM

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Mexico City — Gentherm Inc., a US-based supplier of heated seats for the automotive industry, has announced the relocation of a portion of its US manufacturing operations to Mexico.

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The company’s board of directors approved on September 15 a plan to move its manufacturing operations in Greenville, South Carolina, to a new plant in Monterrey, in Mexico’s Nuevo León state, Gentherm said in a filing with the US Securities and Exchange Commission (SEC).

“The plan is expected to reduce the company’s cost base, improve its financial performance and cash flow generation, and create a streamlined organization better positioned to meet its key financial and operational priorities,” the company said.

With the decision, Gentherm expands its manufacturing operations in Monterrey, where it already has a production center. The company has other production centers in the country, in Ciudad Acuña, in Coahuila state, and in Celaya in Guanajuato state, according to its website.


The Monterrey metropolitan area, which is located 240km from the US border, is home to manufacturing operations of Kia Motors and will soon host Tesla. Both automakers are Gentherm customers, according to Bloomberg.

The move, scheduled to take place in 2025, will cost the company between $14 and $18 million.

The figure considers severance, retention and termination costs of between $2 million and $4 million; capital expenditures of between $7 million and $8 million; and non-cash expenses for accelerated depreciation and impairment of fixed assets of approximately $1 million.

In return, the projections consider earnings between $4 million and $5 million per year.

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