China’s Great Wall Pondering Factory In Mexico

Chinese automaker Great Wall Motor is pondering constructing a plant in two possible Mexican states.

Although a number of automakers have pulled back on their plans for facilities in Mexico due to the Trump administration, people close to Great Wall suggest that the Chinese firm isn’t concerned and is looking at a plant in Neuvo Leon or the central state of San Luis Potosi, Reuters reports.

Additionally, company documents have revealed that officials from Great Wall have met with two large Mexican railroad companies, Ferrocarril Mexicano and Kansas City Southern de Mexico, to evaluate the infrastructure of the two states.

Interestingly, a senior Great Wall Motor executive, speaking anonymously, revealed that the carmaker is also looking at locations in the United States and that a decision on where to build the factory will be made based on trade issues between the U.S., Mexico and China.

Current word suggests that construction of the plant could commence next year and cost approximately $500 million. When fully operational, it could build 250,000 vehicles a year for the U.S. and Mexican markets.

Great Wall isn’t alone in pursuing the construction of factories in Mexico. While some U.S. carmakers have backpedalled on their Mexican plans in recent months, Audi and Kia opened factories in the country last year and will soon be followed by the likes of Toyota and BMW. China’s BAIC is also planning a facility in Mexico as is another Chinese marque, Anhul Jianghuai Automobile.