November 23, 2007
Chinese automaker to introduce and build cars in Mexico
One of the vehicles that could be produced under the FAW Group’s collaboration with Grupo Elektra. Click image to enlarge
Mexico City, Mexico – Grupo Elektra S.A. de C.V., a Latin American retailer, finance and banking services company, has announced it will introduce Chinese-built automobiles into the Mexican market in the first quarter of 2008 and eventually build them itself.
The company completed a strategic alliance with First Automobile Works (FAW) Group, the largest automobile group in China, and partner of Volkswagen/Audi, Toyota and Mazda. Under the alliance, Grupo Elektra will sell Chinese-made cars and, within the next three years, build an assembly plant in collaboration with FAW Group in the state of Michoacan to produce cars in Mexico in 2010 for sale in Mexico and Central America.
The investment to build the plant and purchase equipment will be approximately US$150 million over the three-year period. The plant will have a capacity of 100,000 vehicles annually, with the company agreeing to analyze the possibility of increasing production after three years.
The vehicles will be priced at 5 to 10 per cent lower than the current average in Mexico and will be available through Grupo’s Banco Azteca’s financing.