Chinese Auto Plant in Veracruz Falls Short on Job Promises

Veracruz has facilitated operations for a Chinese automotive company with promises of substantial economic development and job creation. However, the region’s anticipated transformation, including the creation of 10,000 jobs, has yet to materialize. 

In 2009, under Governor Fidel Herrera Beltrán, Veracruz transferred the Agrocentro Siglo XXI facility to Automotive Trucks, a subsidiary of the Chinese company Foton. Initially, the plant was expected to assemble agricultural tractors and contribute to local economic development. The government provided the facility at no cost, justifying the decision as part of its industrial development strategy to attract foreign investment and create jobs.

A letter of intent signed earlier that year outlined a two-phase plan: the establishment of a pilot plant for agricultural machinery assembly and the eventual development of a flexible production facility for vehicles. 

The Agrocentro Siglo XXI itself, a project from the late 1990s, had already seen setbacks. Conceived as a hub for agricultural technology and trade, the facility was abandoned due to operational challenges. Its unique structure earned it the nickname “Armadillo Blanco,” underscoring its status as an underutilized investment.

Today, the facility assembles unitary, agricultural, and construction vehicles, but regional authorities estimate that job creation remains below 400 positions. This is significantly less than the projected thousands of jobs initially promised.

In 2017, Baic Motor partnered with Automotive Trucks, announcing a US$30 million investment to enhance the plant’s capacity. The first production line aimed to manufacture 30,000 units annually, targeting domestic and export markets. This development added just 60 new jobs to the existing workforce of 300, falling short of expectations. Although robotic arms now drive assembly operations, the overall employment impact has been modest.