Chinese automaker Jianghuai Automobile Co Ltd (JAC) and Mexico’s Giant Motors Latino America plan to jointly assemble SUVs at a plant near Mexico City, according to local sources.
The announcement was made by Hidalgo state governor Omar Fayad who suggested the two companies plan to jointly invest MXN4.4bn (US$215m) in a plant in Ciudad Sahagun, about 60km (35 miles) from Mexico City, which is currently owned by General Motors.
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The governor said the factory would initially target the local market but would later expand sales into other Latin American countries. Initial annual production capacity would be set at 11,000 units, rising to 40,000 at a later stage.
JAC confirmed the two companies are “strengthening technological cooperation” but stopped short of confirming plans to invest in an assembly plant.
Giant Motors CEO Elias Massri was also quoted by various media outlets as suggesting that small-scale assembly could begin within two to three months with a first-year production target of around 1,000 units.
JAC, based in China’s Anhui province, sold 367,300 passenger vehicles last year, according to local reports. Of those, 27,500 were SUVs.
