General Motors in talks to move Asian manufacturing to Mexico

In an effort to reduce imports into the country from Asia and increase domestic manufacturing, Mexico’s deputy head of industry and trade, Vidal Llerenas, is in talks with several industrial giants including General Motors (NYSE:GM), Foxconn, and Intel (INTC) to begin manufacturing locally.

GM (GM) and Foxconn are expected to announce plans to swap out products manufactured in Asia for production in Mexico later this month, Llerenas recently said to Reuters, adding that the Mexican government is also currently in talks with Stellantis (STLA) and DHL. Intel (INTC) already plans to substitute 12% of the products it ships to Mexico to begin local manufacturing.

Of the total imported vehicles into Mexico, 40% come from Asia, according to industry data with General Motors (GM) the number one importer at 65% made in China, followed by Sweden’s Volvo (OTCPK:VLVLY) at 54%, and Ford (F) with 24% of all imported vehicles into Mexico made in China.

As recently as 2022, calling it “the most convenient thing to do,” GM (GM) moved manufacturing of the Chevy Onix from Mexico to China, exporting it back to Mexico rather than import the Brazilian made Onix to Mexico. Production of other models destined for Central American markets also moved from Brazil to China, rather than being manufactured in Mexico.