Valeo has started construction of a new manufacturing facility in McAllen, Texas.
The French automotive supplier said it will invest $225m over the next five years in the site, which will span 337,000ft2.
Valeo said the project will create up to 500 jobs.
Production is due to begin in late 2027.
The company said the facility supports one of the largest orders in its history and is part of its “Elevate 2028” strategic plan focused on software-defined vehicle (SDV) technology.
The McAllen plant will produce General Motors’ central compute unit, a liquid-cooled system that processes data from multiple sensors and systems to manage essential vehicle functions.
Valeo North America president Jeffrey Shay said: “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.”
Kristin Toth, purchasing executive director, electrical systems, software and connectivity at General Motors, said: “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.”
Last month, Valeo announced plans to invest more than €200m ($236.8m) in India to expand electrification, advanced driver assistance systems (ADAS) and artificial intelligence (AI) engineering activities under its Elevate 2028 strategy.
The French automotive supplier plans to triple its local revenue to about €700m by 2028.
The company said the funding-about Rs21.49bn at current exchange rates-will enlarge its manufacturing and engineering presence in India to support domestic and export vehicle programmes.
In September, Valeo opened a new production site in Shanghai’s Waigang Industrial Park, situated in Jiading District, to enhance its manufacturing capabilities for advanced driving assistance systems (ADAS) in China.
