Chinese Automaker to Build Auto Plants in Mexico

Chinese automaker Great Wall Motor Co Ltd (601633.SS)(2333.HK) is considering building an auto plant in two Mexican states hit by U.S. President Donald Trump’s drive to make American companies invest at home, sources said.

Great Wall Motor, which describes itself as China’s largest SUV and pickup manufacturer, is interested in building a plant in Nuevo Leon in northern Mexico or the central state of San Luis Potosi, three people familiar with the matter said.

Under pressure from Trump to keep jobs in the United States, Ford Motor Co (F.N) in January canceled a $1.6 billion plant in San Luis Potosi, while heating and air conditioning firm Carrier in December scaled back plans to move production to Nuevo Leon.



Great Wall Motor officials met with Mexico’s top railroad firms, Ferrocarril Mexicano (Ferromex), part of Grupo Mexico (GMEXICOB.MX), as well as Kansas City Southern de Mexico [KCSM.UL](KSU.N), to evaluate the states’ connectivity, according to a source and two documents seen by Reuters.

One of the sources said the company was in direct talks with Nuevo Leon’s government.

Another source said the automaker was also eyeing a U.S.-based plant but gave no further detail on locations.

A senior Great Wall Motor executive, speaking on condition of anonymity, said the choice between U.S. and Mexican locations would depend on trade issues involving the United States, Mexico and China.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza