11.29.07

Yo, that’s FAW!: Chinese Car Company to Open Plant In Mexico

Posted in Science & Technology, World News, Business at 10:48 am by telly_wong

In Mexico, FAW is good.

Construction began last Friday on an auto assembly plant in central Mexico that will produce Chinese cars. The factory will be co-financed by an arm of Mexican conglomerate Grupo Salinas and China’s state-owned FAW Group Corp, one of the nation’s largest auto manufacturers.

The new plant is expected to open by 2010 and plans to produce 100,000 cars a year for sale in Mexico and Central America. The factory is expected to create up to 20,00 new jobs for the region.

At the groundbreaking ceremony, Mexican President Felipe Calderon said, “Most of the world’s investments used to go to China, and today China has come to invest in our country because it recognizes an enormous opportunity in Mexico thanks to its domestic market and proximity to the U.S. and Latin America”.

FAW-line cars will start selling in Mexico early next year for as much as 10 percent less than the current market average, which is about $7,100.

While I’m sure FAW’s investment in Mexico is part of the company’s larger plan to enter the American market, who knows, if this venture pays off, it should lead to more Mexican-based auto factories and more jobs for its citizens — which just might help create a stronger national economy and even possibly help reduce illegal immigration into the United States. Unfortunately, I’m sure the right-wing media and ultra-conservative politicos here likely don’t share in my optimism and have begun whipping up their own drugged-out conspiracy theories.

Meanwhile, Lee Iacocca is somewhere shitting a brick.

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