BYD and Geely Vie to Acquire Nissan–Mercedes Plant in Mexico (MEX) Amid Tariff Pressures)

BYD and Geely, leading Chinese automakers, are finalists in the bid to acquire a Nissan–Mercedes-Benz plant in Aguascalientes, Mexico, according to a source. Mexico’s automotive sector, hit by U.S. tariffs and a 25% duty on Mexican-made cars, is seeing closures and job losses, with exports to the U.S. down 3% in 2025 and about 60,000 auto-industry jobs lost since 2025. Chinese firms are eyeing a foothold in Mexico, where tariffs have incentivized local manufacturing. BYD and Geely, which sold over 4 million vehicles combined in 2025, are among nine bidders, including Chery, Great Wall and VinFast. The plant, with 230,000 annual production capacity, is shuttering as Mercedes shifts GLB production to Hungary and Nissan ends Infiniti QX50/QX55 output. Mexican officials seek to balance potential jobs from Chinese investment with fears of escalating U.S.-China trade tensions, while U.S. barriers stem from concerns over Chinese overcapacity. China’s commerce ministry is reportedly aware of the interest and has not objected to the acquisition.