The Chinese car manufacturers BYD $1211 (+0,58%) and Geely $175 (-0,56%) are among the final bidders to buy an existing car plant from $MBG (+0,34%) /$NSANY in Mexico.
With a takeover, the companies could secure a direct production site in North America and for BYD it would be the largest plant outside of China.
The plant is located in the Mexican state of Aguascalientes and is up for sale as part of the strategic realignment of the previous owners.
In addition to BYD and Geely, the Vietnamese electric vehicle manufacturer VinFast $VFS (+0,11%) is also said to be among the interested parties, according to Reuters, citing people familiar with the matter.
Acquiring the existing production facility would allow Chinese manufacturers to build up production capacity in North America more quickly without having to build a new factory from scratch and Mexico is considered a strategically attractive location due to its proximity to the US market and its established automotive supply chains.
The increased expansion efforts of Chinese car manufacturers are linked to global trade barriers and customs issues. Local production in Mexico could therefore help to circumvent potential import duties and strengthen competitiveness in the North American market.
Whether and to which bidder the plant will ultimately be sold, however, remains to be seen.
