FAW Plans Factory in Mexico, Sell $6000 Cars
China First Automobile Works Group Corp (FAW) has a factory planned for Mexico.
FAW hopes to start importing cars from Mexico by 2010.
Grupo Elektra SAB is Mexico's largest electronic-goods maker. The company has forged a partnership with FAW to build a $150 million factory.
FAW has plans to export cars to Mexico immediately with subcompacts retailing for as little as $6000.
FAW is China's second largest automaker. SAIC is the largest.
The $6,000 car is about 10% less than the current average car price in Mexico.
FAW builds vehicles for Mazda Motor Corp. and Volkswagen AG.
The company also sells the Hongqi, Vita and Besturn models under its own brand.
In 199, Mexico's annual inflation was 52%. Now it's 3.74%. More people can afford cars.
And, China is happy to oblige.
Would you like to drive a Chinese car?
Chinese cars in Mexico.
Implications:
-Many more cars to our already saturated streets and roads
-Although FAW manufactures for VW and Mazda, that doesn’t mean they will produce FAW cars with the same kind of technology and quality. Hopefully I’ll be proven wrong with this.
-Mexican governement should foster FDI in areas such as building better high class Public Transportation among cities in Mexico. Bringing FAW won’t give any solution to this problem.
-With their credits and loans, Grupo Elektra just found the right business model to exploit low class Mexicans, and unfortunately is planning to develop the same model in other countries in Latin America.
To answer your question.
NO, I won’t like to drive a chinese car. At least not in the next 10 years.
Best regards from Mexico,
Sebastian
Hi friends!
I have a FAW VITA car. Good car! Buy it and enjoy sweet life! I am already.
From Russia with love!
Andrey Polyakov
Ok, it is ok for the following 5-7 years to receive Chinese cars in Mexico, but this is a very strategical move from the Chinese guys, right at this moment FAW and other Chinese brands are making small cars and they don’t fully compete with the big names (GM, Ford, Toyota, etc) but in a few years they will… and they will compete in the very USA itself, that’s why opening plants in Mexico is a temporary benefit (mainly for the mexicans) but on a very near future the chinese will affect directly all the US Economy and all-planet economy too…
Gotta stop them, at least control them, because they could hurt us too much, they are millions and millions all they want to do is eat, they don’t mind about other people rather than themselves
Emmanuel
Eng. working for a Honda Motors in Mexico
Deffinitely I do agree with the idea that chinesse goods aren´t the best way to spend our money, please possible costumers read as much as you can, the market is threathened for this people, the market is now balanced or at least is close to, and buying their product could cause an unbalanced situation that can get out of our hands, please think before buy! …..
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