December 04, 2008

Chinese car plant breaks ground in Mexico

It is reported that construction began on Friday on an auto assembly plant in central Mexico, the first to produce Chinese cars. Mr Felipe Calderon president of Mexico led the groundbreaking ceremonies for the factory.

Mr Calderon said that “Most of the world’s investments used to go to China, and today China has come to invest in our country because it recognizes an enormous opportunity in Mexico thanks to its domestic market and proximity to the US and Latin America.”

The car project will be financed by an arm of Mexican conglomerate Grupo Salinas and China’s state owned FAW Group Corp. Due to open by 2010 in Michoacan state, the plant is expected to churn out 100,000 cars a year for sale in Mexico and Central America.