Chinese Car Plant to be Built in Mexico

A first for Chinese cars in Mexico, they have started building a automobile manufacturing plant in Mexico. The plant will create thousands of jobs for Mexicans. 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. This is an unexpected move coming out of China since most corporations look to China for investments, but now China has decided to invest in Mexico.

The Chinese produced vehicles will under price Chevy's lowest priced sedan priced at $7100(one of Mexico's most affordable cars) with a price of $6,280. So the entire dynamics of the auto industry in Mexico will change with these newer and cheaper Chinese made vehicles. I think it will be interesting to see how things will turn out in that market over the next few years.