Chinese carmakers BYD and Geely and Vietnam’s VinFast are finalists to acquire a Nissan-Mercedes-Benz vehicle plant in Aguascalientes, Mexico.

The three companies advanced from nine bidders, which also included Chinese manufacturers Chery and Great Wall Motor, according to sources cited by Reuters.

Chinese automakers are pursuing the site as they seek production capacity outside China while US tariffs disrupt Mexico’s auto trade.

The Aguascalientes factory, opened in 2017 with annual capacity of 230,000 vehicles, is being closed after Nissan ended production of the Infiniti QX50 and QX55 there and Mercedes-Benz moved GLB output to Hungary.

According to the report, the closure is part of wider restructuring by Nissan, which is also shutting another facility in Mexico, while Mercedes-Benz shifts next-generation GLB production to Europe.

Mexico’s federal government lacks authority to block the sale but has encouraged local authorities to postpone Chinese automotive investment approvals as it negotiates North American trade arrangements with the US, government sources told Reuters.

Mexico last year imposed 50% tariffs on Chinese vehicles and goods, a step viewed as aligning with Washington but also encouraging Chinese carmakers to establish local manufacturing.

Interest from BYD and Geely underscores the rapid expansion of China’s automotive sector.

Mexico’s auto industry has faced mounting strain since the US imposed a 25% tariff on Mexican-built cars in March 2025.

The measure contributed to a nearly 3% fall in exports to the US in 2025 and about 60,000 job losses across the sector last year, based on industry and government figures cited by the news agency.

Overseas factory projects require clearance from China’s commerce ministry, and one source cited in the report said the ministry is aware of the Aguascalientes proposals and has not raised objections.

"BYD, Geely and VinFast bid for Nissan-Mercedes Mexico plant – report" was originally created and published by Just Auto, a GlobalData owned brand.

 

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