41.68 million yuan, Chinese companies went to Mexico to set up auto parts factories!

According to the latest news released by my country’s auto parts company Xinquan on the evening of August 11, the company decided to invest US$6 million (approximately RMB 41.68 million) in Mexico through its subsidiary Xinquan Hong Kong to establish a local auto parts company ——Xinquan (Mexico) Auto Parts Co., Ltd.
It is understood that Mexico is an important automobile producer and parts importer in the world. Chinese companies are going to Mexico to build an auto parts factory in the hope of strengthening their presence in North America and further reducing transportation costs. However, in mid-March of this year, some Chinese auto parts suppliers suspended production to prevent and control the epidemic, and Mexican automakers immediately worried that the shortage of key parts in China might cause local auto factories to suspend production.
As the epidemic further spread around the world, the plot reversed again. According to reports, in April of this year, more than 150 vehicle manufacturers around the world decided to temporarily close their factories, which affected the foreign trade business of many Chinese auto parts suppliers. Therefore, Xinquan’s establishment of an auto parts factory here means that it is closer to overseas customers and it is easier to avoid the risk of insufficient supply.