The main electric car manufacturer in China, Byd, decided to suspend its plans to build a plant in Mexico due to geopolitical tensions and uncertainty of the commercial policies of President Donald Trump, according to a Bloomberg News report.
The company is still interested in expanding in America, but does not have a schedule to make a new investment, said the executive vice president of Byd, Stella Li, in an interview on Tuesday in the Brazilian state of Bahía, where the firm is opening its first factory outside Asia.
“Geopolitical problems have a great impact on the automotive industry,” Li said. “Now everyone is rethinking their strategy in other countries. We want to wait for there to be more clarity before making a decision,” he said according to the news agency.
Lee: Sheinbaum states that the investment of the Chinese automotive byd in Mexico ‘was never formal’
Bloomberg recalled that Byd was analyzing three possible locations in Mexico, but stopped the search last year, waiting for the results of the presidential elections in the United States.
He added that in March, President Claudia Sheinbaum declared that Byd had not submitted a formal offer to invest in the country.
He explained that the Ministry of Commerce of China delayed the approval of the plant in Mexico due to the concern that the United States could access the company’s technology, according to Financial Times in March.
Lee: China delays AT Plant approval in Mexico for fear that technology to pass to EU: FT
That was before Trump announced generalized tariffs on dozens of United States commercial partners and taxes on certain imported goods, including cars, which disrupted industry supply lines.
Inspy, discover and share. Follow us and find what you are looking for on our Instagram!
