Chinese Automakers Compete to Acquire Shuttered Nissan Plant in Mexico

Two major Chinese automakers — BYD and Geely — are among the finalists bidding to acquire a shuttered car manufacturing plant in Aguascalientes, Mexico.

The facility was originally built as a joint venture between Nissan and Mercedes-Benz, representing an investment of around $1 billion and capable of producing up to 230,000 vehicles annually.

Vietnamese EV manufacturer VinFast is also competing for the factory, with the three companies emerging as finalists from an initial group of nine bidders.

Strategic Importance of the Mexican Plant

The plant is considered highly attractive due to its established infrastructure, skilled workforce, and strategic location within Mexico’s automotive manufacturing hub.

If a Chinese automaker succeeds in acquiring the factory, it could provide a valuable production base for serving both Latin American markets and potential export opportunities.

Mexico is not only a key market, it’s part of the future.

BYD executive Stella Li said in earlier remarks about the company’s ambitions in the country.

Why Chinese Automakers Are Interested

Several factors make the Aguascalientes facility appealing for global automakers:

• Existing manufacturing capacity of around 230,000 vehicles per year
• Access to skilled automotive labor and supply chains
• Strategic position for serving Latin American markets
• Opportunity to establish local production outside China

Industry experts say the potential deal reflects a broader shift in global automotive manufacturing, as Chinese carmakers increasingly expand overseas production to support global sales growth.

At the same time, the investment could raise political and trade considerations as North American governments evaluate the growing presence of Chinese automakers in the region.

Source: https://mexiconewsdaily.com/business/shuttered-nissan-plant-in-aguascalientes/