Originally published Friday, November 23, 2007 at 12:00 AM
Chinese automaker, Mexican retailer plan low-cost cars
Mexico's largest specialty retailer said Thursday that it was partnering with one of China's Big Three automakers to build a plant in central...
Los Angeles Times
MEXICO CITY — Mexico's largest specialty retailer said Thursday that it was partnering with one of China's Big Three automakers to build a plant in central Mexico with capacity to produce 100,000 vehicles a year.
Appliance and electronics giant Grupo Elektra and Beijing-based First Automobile Works Group (FAW) are scheduled to hold a groundbreaking in the state of Michoacán today, where the companies will detail their plans to build and finance low-cost cars aimed at Mexico's emerging middle class.
Although the $150 million plant isn't slated to open until 2010, FAW will begin exporting cars to Mexico immediately, said Daniel McCosh, a spokesman for Grupo Salinas, Elektra's parent. He said subcompact vehicles retailing for as little as $6,000 should be available by year-end.
McCosh said the plant will employ about 2,000 workers when it opens in 2010, and will be looking to export vehicles to Central America and perhaps eventually to the United States.
Founded in 1956, FAW is one of China's largest automakers, with sales of more than 1 million last year. The company has partnered with Volkswagen, Toyota and Mazda to build and sell those companies' models in China.
Mexico has one of the most wide-open vehicle markets in Latin America. More than 1.1 million new cars and trucks were sold here last year, but fewer than two in 10 Mexicans currently own a car. A stable economy and an explosion of consumer credit mean many are looking for a first car.
More than 50 brands and 300 models fight for consumers' attention in Mexico. And while most new cars sold here are small, a flood of larger, low-cost used vehicles from the U.S. has cut into subcompact sales in recent years. It's a trend that some analysts say will accelerate when all NAFTA limits on used vehicles are lifted in 2009.
The manufacturing plant is a huge win for Michoacán, one of the biggest exporters of migrant labor to the United States. Grupo Salinas and FAW chose Michoacán because of its central location, Pacific port and low costs, according to Jesus Melgoza, secretary of economic development for the state.
Copyright © 2007 The Seattle Times Company
UPDATE - 10:01 AM
Rebels tighten hold on Libya oil port
UPDATE - 09:29 AM
Reality leads US to temper its tough talk on Libya
UPDATE - 09:38 AM
2 Ark. injection wells may be closed amid quakes
Armed guards save Dutch couple from Somali pirates
Navy to release lewd video investigation findings

nwautos
Turismo upgrade "Gran Turismo 5: XL Edition" for PlayStation 3 has features such as new car-tuning settings, new NASCAR vehicles, better replay video...
Post a comment
- Lakewood cop accused of embezzling $150K meant for slain officers' families
- 3 big health insurers stockpile $2.4 billion as rates keep rising
- Agency set to investigate handling of 911 call about Josh Powell
- Quick decisions: How Washington hired its new football staff
- Social worker recounts minutes before Powell fire
- Historic day for gay marriage as another fight looms
- Justin Wilcox's versatile defensive style is the right fit for Huskies | Jerry Brewer
- It's Terrence Time: Enigmatic Ross leads Huskies
- $25B settlement reached over foreclosure abuses
- Council members get briefing on arena proposal, minus details
- Gay-marriage bill passes House, awaits Gregoire's signature
492 - Wanted in Seattle classrooms: more teachers of color
384 - Council members get briefing on arena proposal, minus details
301 - AP Source: Obama to change birth control rule
289 - Oregon live game thread
155 - Worker: Josh Powell told son he had 'surprise'
108 - Rough road again
105 - USA Today further spells out how Mariners, handful of clubs next in line for huge cash windfall
74 - Marijuana legalization initiative set to go on Nov. ballot
71 - A few late-night notes
69
- Wanted in Seattle classrooms: more teachers of color
- State Medicaid program to stop paying for unneeded ER visits
- 3 big health insurers stockpile $2.4 billion as rates keep rising
- Economy, blogs give survivalists new reason to look to Northwest
- State's share of mortgage settlement: $648 million
- One man's audacious pursuit of sailing history
- Darren Berg gets 18-year sentence for Ponzi scheme
- Bellevue College adds a third bachelor's degree program
- $25B settlement reached over foreclosure abuses
- 'Gauguin and Polynesia': dazzling mix-and-match | Art review







