Jetour Enters Mexico; Tesla’s Plant Seems Closer
Tesla is reportedly considering Hidalgo and Nuevo Leon for a new assembly plant in Mexico, according to Marcelo Ebrard, Minister of Foreign Affairs. However, Mexican President Andrés Manuel López Obrador discounted Nuevo Leon as a potential destination, pointing to the lack of water in the state. Tesla aims to establish a complete cluster in Mexico.
Meanwhile, Jetour will launch two SUVs in Mexico in April 2023 and a hybrid vehicle by the end of the year. The company will also invest US$1 billion to build an ICE and electric vehicle assembly plant.
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Tesla Evaluates Nuevo Leon, Hidalgo for New Plant in Mexico: Ebrard
President López Obrador is set to meet Elon Musk, CEO, Tesla, regarding the EV maker’s plans to build a new assembly plant in Mexico, says Ebrard. The company is studying several locations for the establishment of a cluster, with Hidalgo and Nuevo Leon being under consideration. While Nuevo Leon is a strong contender due to its proximity to Texas, Hidalgo offers lower costs and closer access to the Felipe Angeles International Airport (AIFA), which could facilitate logistics for Tesla's vehicle production. López Obrador discounted Nuevo Leon as a potential destination, saying that the state lacks water.
Mexico’s Steel Producers Are Ready to Meet the Rising Demand
The country’s steel producers are reportedly interested in addressing the increasing demand for the material, after the announcement of the potential Tesla investment in Mexico. The industry has the capability to rapidly adapt to the new market demands. “If you want to picture it in reverse, if there are potential investments in Mexico’s northeast it is because those companies know that there is already a supply chain here, as well as talent and distribution capabilities,” says Stefano Maggiolino, President, Technological Association of Iron and Steel (AIST).
Negotiations Stall at VU Manufacturing; Union Calls for Strike
The Democratic Union of the League of Mexican Workers, also known as La Liga, has announced a strike against VU Manufacturing on Feb. 25, accusing the company of stonewalling negotiations on a fresh collective bargaining deal. According to Pablo Franco, Legal Representative, La Liga, the manufacturing company has only submitted one proposal, which the union has dismissed.
"The local court refuses to summon us to a conciliatory hearing with the company to formally carry out the conciliation or in any case ratify the strike. The Court has twice asked us to modify the date of the strike, we understand that this is part of a policy of the state of Coahuila against the right to strike," says Franco.
Jetour to Enter Mexican Market with US$1 billion Investment
The Chinese automaker has announced its debut in Mexico’s automotive market in April 2023 with the introduction of two SUVs, followed by a hybrid vehicle by the end of this year. Additionally, the company is set to invest US$1 billion in the establishment of an ICE and electric vehicle assembly plant, due to be completed by 2024.
Víctor Villanueva, CEO, Jetour Mexico, confirms that the company is currently in talks with various state governments, including those of Aguascalientes and Guanajuato, to determine the plant’s location. To manufacture SUVs in Mexico, Jetour will partner with LDR Company, a representative of Chinese businesses in the region.