BYD Pauses Mexico Factory Project Amidst Ongoing Trade Tensions with the U.S
A BYD Seagull model showcased in China. Teh company is keen on growth in the Americas but lacks a specific timeline for new investments. (Qilai Shen/Bloomberg)
Citing facts from Bloomberg, BYD Co., a leading electric vehicle manufacturer from China, has decided to pause its plans for a important factory in Mexico due to rising geopolitical tensions and uncertainties linked to former President donald Trump’s trade policies.
The firm is still eager to expand within the Americas; however, according to Stella Li, BYD’s Executive Vice President, there’s no set date for any new investment. In an interview on July 1 while visiting Bahia in Brazil—where thay are inaugurating their first factory outside of Asia—Li emphasized that “Geopolitical factors heavily influence the automotive sector.” She added that many companies are reassessing their strategies globally and that they prefer waiting for clearer conditions before proceeding.
Previously, BYD had been exploring three potential sites in Mexico but halted its search last year as it awaited the outcome of the U.S. presidential election.
RELATED: Check out how BYD has developed a battery system capable of charging EVs within five minutes.
This decision comes after Mexican President Claudia Sheinbaum noted back in March that there was no formal investment proposal from BYD yet. Furthermore, concerns regarding technology access by U.S. entities led China’s commerce ministry to delay approval for the plant.
The backdrop includes Trump’s imposition of extensive tariffs affecting numerous trading partners and specific taxes on imports like automobiles—this has significantly disrupted supply chains across industries.
The impact of these tariffs is ample enough that American automakers have raised alarms about billions more being added to their operational costs.For instance, General Motors recently announced plans involving $4 billion aimed at relocating production of several pickup trucks and SUVs from Mexican facilities back into the United States.
While BYD remains committed to expanding its manufacturing capabilities globally, Li indicated uncertainty looms over when such decisions will be finalized due to fluctuating global trade dynamics.
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