Gelly Automobile announced it’s plan to build a new faktory in Mexico, to supply both South and North American markets. Chinese company will invest up to $270 million to build a factory in León, the capital of Guanajuato state in central Mexico. Geely believes Mexico will provide a stepping-stone to achieve its ultimate ambition: conquering the U.S. market.

In the initial stage, Geely plans to invest $130 million over three years, ramping annual production up to 50,000 units. In the second stage, the company would invest another $140 million over two years, boosting capacity to 120,000 units. A third stage, after 2013, will take annual capacity to 300,000 units and will create more than 2,000 new jobs. Mexico offers a great deal of opportunity, not only as an export hub supported by competitive labor rates, but also an attractive market of about the same size as Canada's, with annual sales of 1.1 million vehicles.

Besides Geely, two other chinese company are going to invest in Mexico - FAW and ZX Auto. Geely has become the fifth Chinese automaker to sign a deal to display its wares at the Detroit Auto show in January. Apart from it, will be there BYD Auto, Brilliance, Chery and Changfeng.

Source: edmunds.com