Valeo Breaks Ground on $225 Million High-Tech Plant in McAllen, Texas, for Software-Defined Vehicle Technology

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Mar 24, 2026, 19:58 ET

PARIS, March 24, 2026 /PRNewswire/ -- Valeo, a global leader in automotive technology, broke ground today on a new state-of-the-art manufacturing facility in McAllen, Texas.

The company is investing $225 million over the next five years for a 337,000 square-foot facility that will create up to 500 new jobs in the region. Production will begin in late 2027.

Valeo Groundbreaking celebration with shovels

This new U.S. footprint is being built to deliver one of the largest orders in Valeo's history. This is fully aligned with Valeo's "Elevate 2028" strategic plan and supports the industry's transformation toward software-defined vehicles. Valeo McAllen will include production of General Motors' central compute unit, which is a liquid-cooled system powered by next-generation processors. These units process vast amounts of data from multiple sensors and systems to control essential functions.

"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," said Kristin Toth, Purchasing Executive Director, Electrical Systems, Software and Connectivity at General Motors. "Projects such as Valeo's plant in Texas will play a crucial role as we bring our next-generation electrical architecture to market."

"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, Valeo North America President. "We're grateful for the opportunity to grow our business with GM in the state of Texas."

About Valeo

Valeo is a leading global technology company creating innovative solutions and systems for automotive and technology partners worldwide. Valeo is structured around its POWER, BRAIN and LIGHT Divisions, and Valeo Service, the augmented service partner, for the aftermarket and new forms of mobility.

Valeo is committed to making mobility safer, more sustainable and affordable to all. The Group is playing a vital role in shaping the Car of Tomorrow: which will be electrified, safer and software-defined. Valeo is leveraging its global industrial footprint and its technological leadership in electrification, advanced driver assistance systems, lighting and software to capture an increasing share of value per vehicle.

Valeo is listed on the Paris Stock Exchange.

Learn more at www.valeo.com.

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SOURCE Valeo