When one thinks of Mexico, one thinks of tourism, beer, tequila production, and sadly, illegal drugs. Few people know an amazing fact, Mexico has a car manufacturing industry that is number seven in the world. Now the Financial Times of London published an amazing article. Three Chinese electric car companies are looking to set up manufacturing plants in Mexico as follows:
MG
with a projected capital investment between $1.5 billion and $2 billion.
BYD
with an initial investment of "hundreds of millions of dollars"
Chery
with undisclosed capital investment plans
Another major Chinese battery manufacturer announced plans for a
staggering $12 billion for a battery plant in Mexico. All these investments are
great news for the Mexican economy. Mexico is also the largest trading
partner of the U.S. in the world. US government officials are quite
concerned about this major Chinese investment so close to the U.S. Under
certain circumstances, all the electric vehicles produced by Chinese car
companies in Mexico could qualify for US tax credits to purchasers of these vehicles.
I love competition. This will make everyone work harder and put out
better products at lower cost.
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