China’s Great Wall Reportedly Considering Plant in Mexico
Truck and SUV Brand In Talks with Railroads, Government Officials
“The Chinese are coming” has been an oft-repeated refrain over the last decade, as the imminent arrival of Chinese-brand vehicles was expected. Now, on the eve of the third decade of the 21st century, there are no Chinese car brands sold in the U.S. in significant numbers, other than a few municipal fleets and commercial vehicles. However, the arrival of Chinese-branded vehicles may finally be happening soon, according to a Reuters report. The outlet is reporting that Chinese automaker Great Wall, the country’s largest-volume producer of trucks and SUVs, is in talks with railway operators and government officials in Mexico’s states of Nuevo Leon and San Luis Potosi to determine the areas’ logistical status and suitability for manufacturing.
Under pressure from the Trump administration’s “America first” rhetoric, Ford cancelled further construction on a partially constructed plant in San Luis Potosi, which was scheduled to produce compact cars for export to the U.S. and other Latin American markets. Great Wall could either take over and complete the abandoned Ford site, or start green field construction on one of its own plants in Mexico. The company is reportedly also considering a production site in the U.S. An anonymous source within the company said the final determination of the production site will likely be determined by whatever trade deal is worked out between China, Mexico, and the U.S. Great Wall is reportedly looking at a budget of around $500 million for the new plant and an annual production capacity of 250,000 units.