Chinese automaker Jetour announced it will build a $3 billion automotive plant in Mexico by the end of 2024, with the aim of manufacturing electric and gasoline-powered cars for the North American market.
As part of its investment in Mexico, Jetour is partnering with LDR Solutions Co., a conglomerate of Chinese automotive companies doing business in the country. Both Jetour and LDR Solutions are owned by the Chinese government.
“The plan is for the plant to produce combustion cars for South America and electric cars for the United States and Canada,” Jose Centeno, a board member of LDR Solutions, said during a press conference last week.
Jetour has not finalized the location of the new factory, but expects a decision within the next two months.
“It will be in a strategic place, perhaps in the Bajio or Aguascalientes regions; there are several options, but it is not decided yet,” Victor Villanueva, director of Jetour Mexico, said.
Bajio and Aguascalientes are located in central Mexico, about 500 miles from the U.S.-Mexico border crossing in Laredo, Texas. Villanueva also said locations closer to the border are being considered.
The announcement of the Jetour manufacturing plant in Mexico is part of a nearshoring boom and the expansion of foreign companies in the Mexican market.
For the past several months, Chirey Automobile Co. has been negotiating with the Mexican government for the location of a new plant to produce cars for North and South America. Chirey is part of Chery Holdings, the same Chinese state-owned conglomerate that runs the Jetour automotive company.
Texas-based automaker Tesla also recently announced plans to build a $5 billion electric vehicle factory near Monterrey, Mexico.
Tesla’s arrival in Mexico is expected to boost the number of automotive suppliers it has in the country, with companies such as Noah Itech and the AGP Group recently announcing new factories in the region.
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