SAIC-GM-Wuling: Explores the option of manufacturing in Mexico

General Motors and its Chinese partner SAIC-GM-Wuling are in talks to manufacture vehicles in Mexico: a strategic move that will establish the first Chinese-backed production base in North America.
This comes amid shifting trade policies, particularly after Mexico raised tariffs on Chinese imports by 50% in January.

“The new project in the Mexican market is expected to become a major driver of future business growth,” said Huang Yaosong, the executive leading the SAIC-GM-Wuling delegation. “We must do everything possible to ensure a smooth and effective implementation of the project.”

The company already ships around 130,000 Chevrolet vehicles assembled in China to Mexico each year, including models such as the Aveo, Groove, and the Tornado pickup truck.

However, local production will allow the company to circumvent the tariff barrier and leverage GM’s existing manufacturing infrastructure.

For the Chinese delegation, producing vehicles at GM’s Mexican subsidiary represents a capital-light approach, as it avoids the investment required to build a completely new plant.

This strategy effectively turns a Chinese partnership into a lever for gaining production flexibility in North America.