New Tesla factory to open in Mexico
Mexican President Andrés Manuel López Obrador announced on Tuesday that electric carmaker Tesla would build a new factory in the north of the country.
The factory will be located in the city of Monterrey, in the state of Nuevo Leon, putting an end to speculation about which state would be awarded the factory after several vying for the opportunity.
“This will represent a considerable investment and many, many jobs,” said Lopez Obrador. He added that CEO Elon Musk was receptive to Mexico’s environmental concerns, such as fears the project would exacerbate water shortages in the region.
Lopez Obrador’s office had hinted at the deal earlier in the week, reporting at least two phone calls between the president and Musk.
massive investment
Martha Delgado, Mexico’s deputy foreign minister, said Musk will invest approximately $5 billion (about €4.7 billion) in the plant, which is expected to be the world’s largest electric vehicle manufacturing facility.
“We brought to Mexico an investment of more or less US$ 5 billion for the construction of the largest electric vehicle factory in the world”, said the senior government official in a video posted on Twitter.
Mexico seeks role as an industrial hub
The deal represents a major success for the president’s plan to attract manufacturing capacity from Asia.
More details on the project are due on Wednesday, when Musk will hold an “Investor Day” and unveil what he calls “Master Plan Part Three”.
Foreign investment in Mexico reached its highest level in years in 2022, using the country’s skilled workforce and relatively lower wages to make it a global hub for the auto industry.
However, some investors remain shy about getting involved in the country due to López Obrador’s plan to strengthen state control of the energy market and restrict the role of private capital.
Most of Tesla’s manufacturing capacity and workforce is in the US, but the automaker also has multiple facilities in the Netherlands, Germany, Canada and China.
es,mk/nm (AP, Reuters, AFP)
Source: DW
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