China’s BYD and Geely bid for Nissan-Mercedes Mexico plant to dodge Trump tariffs
With Mexico’s auto sector battered by tariffs, Chinese investment offers a lifeline that threatens to inflame tensions with Washington
Two of China’s leading carmakers, BYD and Geely, are among the finalists vying to purchase a Nissan–Mercedes-Benz plant in Mexico, according to a person familiar with the matter, as China seeks a manufacturing foothold in a country where US tariffs are fuelling factory closures and lay-offs.
The finalists emerged from nine companies expressing interest in acquiring the factory, including at least two other major Chinese manufacturers: Chery and Great Wall Motor, according to two sources familiar with the matter. Vietnamese electric-vehicle maker VinFast is the third finalist, one of the people said.
The interest from Chinese carmakers, which has not been previously reported, heralds a potentially major shift in Mexico’s car industry. For decades, US, European and Japanese carmakers have dominated, mostly building US-bound vehicles.
Now, Mexican officials face a balancing act. Trump administration tariffs are battering Mexico’s auto sector, and Chinese investment could generate much-needed jobs. But Mexican officials also fear that Chinese production in Mexico could inflame Washington and jeopardise this year’s North American trade-agreement negotiations.
The United States has effectively banned Chinese-brand vehicle sales, and President Donald Trump has accused Mexico of providing a back door for Chinese goods to enter the US market.
BYD, Geely, Chery, Great Wall and VinFast did not comment for this story.