Chinese automakers BYD, Chery, Great Wall Motor, and Geely have emerged as four of the final bidders to acquire the Cooperation Manufacturing Plant Aguascalientes (COMPAS), a Nissan–Mercedes‑Benz joint-venture factory in central Mexico scheduled to shut down by May 2026. The bid for the 230,000-unit-capacity facility underscores a strategic pivot by Chinese OEMs toward building localised manufacturing links in North America as global auto supply chains realign in 2026, according to Sina.
The COMPAS facility, which opened in 2017 as a joint venture between Nissan and Mercedes‑Benz, will cease operations amid shifting market dynamics and tariff pressures. According to available reporting, nine companies expressed interest in acquiring the plant; among those publicly named are Chinese automakers BYD, Geely, Chery, and Great Wall Motor, with Vietnam’s VinFast also advancing to the final stage of negotiations.
Chinese sources also indicate that other Chinese groups, such as SAIC, were noted in earlier discussions about potential interest, although full confirmation of the identities of all nine bidders has not been released.
For decades, Mexico’s auto sector has been heavily export-oriented, with the United States absorbing a large share of locally manufactured vehicles. However, recent U.S. tariff policies have contributed to production slowdowns and job losses, prompting both industry stakeholders and policymakers to weigh the potential economic gains of new investment against broader trade concerns.
This competitive bid differs from past greenfield efforts by Chinese OEMs that were stalled by regulatory and geopolitical uncertainties. For example, BYD’s previous plans for a new factory in Mexico were hindered by approval delays and red-tape concerns. Acquiring an existing facility like COMPAS could provide a faster path to localised assembly, enabling manufacturers to serve domestic and export markets without the lengthy permitting process typically associated with new plant construction.
The surge in Chinese interest also reflects the rapidly growing footprint of Chinese vehicles in Latin America. Consultancy and market data show that Chinese brands’ share of Mexico’s annual vehicle sales rose from negligible levels in 2020 to roughly 10 percent by 2025, illustrating how export momentum influences strategic capacity decisions beyond sales.
If a Chinese automaker secures the plant, it would establish direct manufacturing presence in a major automotive production hub outside Asia. The competitive process is ongoing, and a final decision is expected in the coming months.
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