Two of China’s largest carmakers, BYD and Geely, have emerged as frontrunners to acquire a Nissan–Mercedes-Benz assembly plant in Guanajuato, central Mexico. The facility — which has produced models such as the Mercedes‑Benz GLB and the Nissan Sentra — offers a ready-made production line, supplier ecosystem and logistical access to both North and South American markets.
The bid comes as the plant’s operations have been squeezed by shifting trade and tariff pressures that have prompted shutdowns and layoffs across the region. For Chinese manufacturers seeking to internationalize rapidly, buying an existing Mexican factory would shortcut years of greenfield investment by delivering certification, a trained workforce and an established supplier base.
Mexico’s geographic proximity to the United States, combined with its network of trade agreements, makes it an attractive hub for automakers that want to serve the large and lucrative North American market without routing production through China. Local production would also mitigate the impact of tariffs, shipping costs and delivery times — practical considerations that have become strategic priorities in the auto industry’s post‑pandemic realignment.
The potential sale highlights two broader trends. First, Chinese OEMs are accelerating overseas expansion not only through exports but also by acquiring capacity abroad. Second, global automakers are increasingly sensitive to regional supply‑chain resilience: ownership of assembly capacity near key markets is now as important as product competitiveness.
A purchase by BYD or Geely would carry economic and political implications. For Mexico it could mean new investment and jobs in a sector already central to the country’s industrial base. For incumbent automakers and some US policymakers, however, the move may raise questions about technology transfer, battery supply security and the strategic role of Chinese firms in a market long dominated by North American, European and Japanese players.
Any final deal will hinge on multiple variables: the price and terms the sellers (Nissan and Mercedes‑Benz) seek, the extent to which the buyer commits to local employment and investment, Mexican regulatory and labor considerations, and the geopolitical backdrop between China, the United States and Mexico. If consummated, the acquisition would mark a significant step in the globalization of Chinese auto industry players and could accelerate the region’s transition toward electrified vehicle manufacturing.