by Staff Writers
Mexico City (AFP) Feb 2, 2017
China's JAC Motors and a Mexican firm are teaming up to invest $212 million in a plant to produce sport-utility vehicles in central Mexico, officials said Wednesday amid trade tensions with the United States.
The deal will expand the capacity of a plant owned by the Mexican company, Giant Motors Latinoamerica, in Ciudad Sahagun, central Hidalgo state.
Giant Motors director Elias Massri said production is expected to begin on March 28, with 1,000 vehicles in the first year and the goal of making 10,000 units per year by 2021.
The factory, which already produces trucks for China's FAW brand, will make two JAC SUV models.
The SUVs will be sold in Mexico, Central America and South America.
The announcement comes as US President Donald Trump has threatened to impose stiff export tariffs on companies that ship jobs to Mexico.
"When you can't look only to the north, you can look to the east," Hidalgo's governor, Omar Fayad, said at a news conference in Mexico City.
US auto giant Ford decided last month to cancel plans for a $1.6 billion factory in the northern state of San Luis Potosi, though the company denied it was due to Trump's threats.
Trump has also lashed out against General Motors and Toyota.
Mexico is the world's fourth biggest car exporter.
Car Technology at SpaceMart.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|