How long will it take for MG to build a factory and R&D center in Mexico?

MG Motor has confirmed that it will set up a car factory and R&D center in Mexico, becoming the second Chinese car manufacturer to settle in Mexico.

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The one-time British sports car company, now owned by China’s SAIC, already sells cars in Mexico but wants to produce its MG and luxury IM cars locally. The company also said the new base would help it expand into the Caribbean and give it a better understanding of the Latin American automotive landscape.

Related: New frugal MG HS targets the RAV4 and CR-V crowd

No timeline has been given for the project, nor a planned factory location, but Mexico City is only 500 miles from the US border, so the factory could be closer than that. However, MG has not suggested that it is making this move with a view to future expansion in the US, Reuters Report.

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Rival Chinese automaker BYD announced plans to build its own factory in Mexico earlier this year, but said it would not use the plant to produce vehicles for the U.S. By producing cars in Mexico for the U.S. market, MG could theoretically avoid the steep tariffs recently imposed on cars imported into the U.S. from China, but the Biden administration is reportedly planning to bolster its defenses by banning the use of Chinese software in self-driving and connected cars. The U.S. government has also pressured Mexico to stop offering incentives to Chinese automakers considering investing south of the U.S. border.

Tesla had considered building a factory in Mexico but has delayed a decision on plans until after the U.S. election in November. Chief Executive Elon Musk is concerned that Donald Trump might follow through on his promise to impose tariffs on electric vehicles built in Mexico and imported into the U.S. Reuters explain.

The first batch of MG models made in China weren’t great, but newer models like the MG4 are really good products, and the Cyberster is one of the few electric sports cars on the market. Would you like to see them sold to American buyers?

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