Despite delays, plans to manufacture BAIC cars in Mexico still stand
The Chinese automaker BAIC (Beijing Automotive Industry Corporation) announced that it has postponed to the end of the year the announcement of an approximately US$ 2 billion investment for the construction of its first manufacturing plant in Mexico. However, “the plan keeps going and the amounts are standing,” the director of the firm in Mexico, Jimena Saenz, told the Alto Nivel news outlet in recent days.
The industry is experiencing a period of uncertainty that is temporary, but not the plans and confidence that BAIC has in Mexico, “which is undoubted, as well as the commitment,” said the official.
BAIC has learned to deal with tariffs and thanks to the assembly of CKD kits in the country, the impact of the tax measure is reduced.
According to Saenz, the BAIC project in Mexico from the beginning was conceived in 3 phases: 1) the import of vehicles, 2) the assembly of CKD kits, which is carried out since 2017 in Veracruz, and 3) the establishment of a plant to supply the markets of both North and Latin America.
In the meantime, the company keeps on with talks for the installation of the plant with authorities from several states until a decision is made.