Chinese producers aim to take over Nissan and Mercedes factory in Mexico

BYD and Geely are eyeing the purchase of the Nissan and Mercedes factory in Aguascalientes (central Mexico). The transaction could shift the balance of power in the Mexican automotive industry but is causing tensions in trade relations with Washington, according to Reuters. The agency, citing a source close to the matter, notes that Vietnamese electric vehicle maker VinFast is also interested. In total, nine firms, including other Chinese manufacturers Chery and Great Wall Motor, have expressed interest. The final investor choice could significantly impact Mexico's automotive sector, long dominated by U.S., European, and Japanese companies. The situation has a strong political context: U.S. tariffs on cars made in Mexico are deepening the industry's crisis, leading to plant closures and layoffs. Meanwhile, the Mexican government fears that increased Chinese presence could strain relations with Washington and complicate this year's negotiations on the North American trade agreement. The Nissan and Mercedes plant in Aguascalientes, which opened in 2017 with an annual capacity of 230,000 vehicles, was closed largely due to these U.S. tariffs, according to industry representatives