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BYD, Geely, VinFast Shortlisted to Buy NissanMercedes Plant in Mexico

The sale would give a buyer immediate production capacity without requiring federal approval.

A drone view shows the Cooperation Manufacturing Plant Aguascalientes (COMPAS), a Nissan and Mercedes‑Benz joint factory with a 230,000‑vehicle capacity, in Aguascalientes, Mexico, February 9, 2026. REUTERS/Liberto Urena
View of a section of the Cooperation Manufacturing Plant Aguascalientes (COMPAS), a Nissan and Mercedes‑Benz joint factory with a 230,000‑vehicle capacity, in Aguascalientes, Mexico, February 9, 2026. REUTERS/Liberto Urena
View of a section of the Cooperation Manufacturing Plant Aguascalientes (COMPAS), a Nissan and Mercedes‑Benz joint factory with a 230,000‑vehicle capacity, in Aguascalientes, Mexico, February 9, 2026. REUTERS/Liberto Urena
A sign of the Cooperation Manufacturing Plant Aguascalientes (COMPAS), a Nissan and Mercedes‑Benz joint factory with a 230,000‑vehicle capacity, sits at the plant in Aguascalientes, Mexico, February 9, 2026. REUTERS/Liberto Urena

Overview

  • Reuters reports the three finalists were chosen from nine interested automakers, a group that included China’s Chery and Great Wall Motor.
  • The Aguascalientes COMPAS factory offers about 230,000 units of annual capacity and is slated to cease operations by May 2026 after Nissan cancels Infiniti QX50/QX55 and Mercedes shifts GLB output to Hungary.
  • Mexico’s economy ministry has privately urged state officials to delay Chinese automaker investments until U.S. trade talks conclude, according to two government sources.
  • A White House spokesperson said U.S. trade barriers reflect national and economic security concerns over subsidized Chinese overcapacity, while Mexico last year raised tariffs to 50% on vehicles from non-trade-agreement countries.
  • Chinese brands have grown to roughly 10% of Mexico’s passenger-vehicle market as the country’s auto sector struggles with tariffs, falling U.S. exports and about 60,000 job losses in 2025; one source said Beijing has not objected to the bids.