- MG says it will build a factory and R&D center in Mexico, though it hasn’t given a timeline for the project.
- The Chinese-owned firm claims the new site will also enable it to gather intelligence on the Latin American market.
- Rival brand BYD has already committed to building its own plant in Mexico.
MG has confirmed it will build a car plant and R&D center in Mexico, making it the second Chinese automaker to put down roots in the country.
The one-time British sports car company that’s now owned by China’s SAIC already sells vehicles in Mexico, but wants to build MG and luxury IM vehicles locally. It also says the new base will help it expand into the Caribbean and allow it to better understand the automotive landscape in Latin America.
Related: New Thrifty MG HS Targets RAV4 AND CR-V Crowd
No timeframe was given for the project, or a location for the planned facility, but Mexico City is only 500 miles from the US border and it’s possible the factory could be a lot closer than that. MG, however, stopped short of suggesting that it was making the move with an eye on expanding into the US in the future, Reuters reports.
Rival Chinese automaker BYD announced plans for its own Mexico plant earlier this year, but said it will not use the factory to produce cars for America. By building cars in Mexico for the US market, MG could theoretically avoid heavy tariffs recently imposed on cars imported to the US from China, but the Biden administration is reportedly planning to increase defenses with a ban on Chinese software in autonomous and connected vehicles. The US government has also pressured Mexico to stop offering incentives to Chinese automakers considering investing south of the US border.
![MG Building A Plant And R&D Center In Mexico, How Long Till It Returns To America?](https://www.carscoops.com/wp-content/uploads/2024/08/MG-Mexico-1024x660.jpg)
Tesla was mulling over building a factory in Mexico but has put a decision on the plans on hold until after November’s US election. CEO Elon Musk is concerned that Donald Trump could follow through on a promise to introduce tariffs on EVs built in Mexico and imported to the US, Reuters says.
The first MG models built under Chinese ownership weren’t great, but newer cars like the MG4 are genuinely good products and the Cyberster is one of the few electric sports cars on the market. Would you like to see them made available to US buyers?
![MG Building A Plant And R&D Center In Mexico, How Long Till It Returns To America?](https://www.carscoops.com/wp-content/uploads/2023/09/Mazda-Cyberster-1a-1024x576.jpg)