Key Takeaways MG plans to build facilities in Mexico to boost its presence in Latin and Central America. Mexican-built EVs can benefit from tax credits under Biden’s administration, making them more attractive to US buyers. It remains to be seen if MG will take this advantage.
Morris Garages (MG) hasn’t been present in the US for quite a while, but there’s a chance that the British brand will return. According to the latest report by Automotive News, MG plans to build facilities in Mexico, America’s biggest trading partner in 2023.
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The maker of the Cyberster electric roadster announced the plan this week, with a plan to build a manufacturing plant and R&D center in the country. However, the SAIC-owned automaker didn’t specifically mention the possibility of selling cars in the US; the Mexican facilities will be used to bolster the company’s presence in Latin and Central America.
The Importance Of Mexico
Mexico is a significant manufacturing location for electric vehicle makers, particularly those who want to sell cars in the region. However, it’s worth noting that Mexico is a strategic site for companies who have yet to have a presence in the US. It can serve as a bridge but more importantly, Mexican-built EVs have an advantage when they cross north of the border.
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Under Biden’s Inflation Reduction Act, Mexican-built EVs (if all conditions are met) can enjoy tax credits that can help bring down pricing, ergo, making them more attractive to American buyers. Evidently, car companies want to take advantage of this tax levy – Audi is one example, which recently announced a sizable investment in its Mexican plant. Chinese automaker BYD also announced a plant to build cars in Mexico earlier this year, though it immediately refuted rumors of any plan to sell cars in the US.
The Chinese Connection
It remains to be seen whether MG will take advantage of its Mexican investment to reenter America. Of note, this move will also allow the automaker to go around Biden’s campaign against China-made products, specifically the 102% tariff against products imported from the People’s Republic.
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It’s also worth noting that MG is essentially a Chinese automaker. It may have a British heritage, but it’s been run and operated by SAIC Motor – one of China’s biggest state-owned automakers – since 2007. Its headquarters is in Shanghai, though it also has manufacturing facilities in China, Thailand, and India. A plan to produce cars in Europe is also in the pipeline.
Source:
Automotive News
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Publish date : 2024-08-10 10:29:00
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