BYD and Geely Go After and Enter the Race to Take Over Billion-Dollar Factory That Nissan and Mercedes Will Abandon

Written by Fabio Lucas Carvalho

Published on 13/02/2026 at 09:03

Updated on 13/02/2026 at 09:04

BYD e Geely avançam para comprar fábrica de US$ 1 bilhão no México, com capacidade de 230 mil veículos por ano.

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Selected For The Final Negotiation Phase, BYD And Geely Compete For The Acquisition Of The COMPAS Plant In Mexico, Unit Created In 2017 With An Investment Of US$ 1 Billion And Capacity For 230 Thousand Vehicles Per Year, Amid USMCA Review And Trade Tensions With The United States

BYD and Geely are among the finalists to acquire the COMPAS plant in Mexico, an investment of US$ 1 billion with a capacity of 230 thousand vehicles per year, amid the USMCA review and trade tensions with the United States.

BYD And Geely Compete For Strategic Asset With Capacity For 230 Thousand Annual Units

The goal of the major Chinese brands is to expand their horizons, even with the access blockade to the United States. It has been confirmed that BYD and Geely are among the finalists for the acquisition of COMPAS, the Cooperative Plant of Aguascalientes.

The unit was created from an alliance between Nissan and Mercedes-Benz initiated in 2017, with an investment of US$ 1 billion. Now, it represents the definitive entry point for the Asian giant into the region.

ARTICLE CONTINUES BELOW

Nissan And Mercedes Exit Opens Space For Industrial Reconfiguration

The availability of COMPAS results from a reconfiguration in the global strategies of its owners. Mercedes-Benz will transfer the production of the GLB model to Hungary, seeking to avoid the 25% tariff imposed by the United States on vehicles manufactured in Mexico starting March 2025.

Nissan is facing a period of global strategic contraction due to low sales. The Japanese automaker will cease operations at this facility and another plant in Mexico City by May 2026.

This withdrawal frees one of the most modern facilities in Mexico. The move comes as Chinese brands experience explosive growth in the local market.

USMCA Review And Caution From The Mexican Government Increase Political Tension

The acquisition occurs amid political tensions. The Mexican government has requested caution and a slower pace in the sales process, which is expected to be finalized in May of this year.

The main reason is the upcoming review of the United States-Mexico-Canada Agreement, scheduled for July 2026. BYD has already filed a complaint against the Trump administration due to tariff policies.

U.S. authorities fear that Chinese factories in Mexico will operate as a backdoor for the entry of Chinese vehicles into the U.S. market, taking advantage of tariff benefits from the trade agreement.

Dependence On Exports And Impact On Employment Increase Sensitivity Of The Case

In 2024, Mexico produced 4 million vehicles, of which 2.8 million were exported to the United States. This data highlights trade dependence now threatened by new tariff policies.

In the past year, the sector recorded an approximate loss of 60 thousand jobs. This scenario increases sensitivity surrounding the potential entry of BYD and Geely into the plant.

The COMPAS factory is considered a high-value technological asset. The area has previously housed the production of premium vehicles and offers infrastructure ready for immediate operation.

For BYD, the acquisition comes after bureaucratic delays faced in the project to build a factory from scratch in Mexico. For Geely, it represents an opportunity to immediately double its operational capacity in the region.

The outcome of negotiations occurs amid commercial and strategic pressures, turning the sale of COMPAS into a central point of the industrial dispute in the continent, with impacts that could redefine the regional productive balance.

BYD and Geely Go After and Enter the Race to Take Over Billion-Dollar Factory That Nissan and Mercedes Will Abandon

Selected For The Final Negotiation Phase, BYD And Geely Compete For The Acquisition Of The COMPAS Plant In Mexico, Unit Created In 2017 With An Investment Of US$ 1 Billion And Capacity For 230 Thousand Vehicles Per Year, Amid USMCA Review And Trade Tensions With The United States

BYD And Geely Compete For Strategic Asset With Capacity For 230 Thousand Annual Units

Nissan And Mercedes Exit Opens Space For Industrial Reconfiguration

USMCA Review And Caution From The Mexican Government Increase Political Tension

Dependence On Exports And Impact On Employment Increase Sensitivity Of The Case

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BYD and Geely Go After and Enter the Race to Take Over Billion-Dollar Factory That Nissan and Mercedes Will Abandon

Selected For The Final Negotiation Phase, BYD And Geely Compete For The Acquisition Of The COMPAS Plant In Mexico, Unit Created In 2017 With An Investment Of US$ 1 Billion And Capacity For 230 Thousand Vehicles Per Year, Amid USMCA Review And Trade Tensions With The United States

BYD And Geely Compete For Strategic Asset With Capacity For 230 Thousand Annual Units

Nissan And Mercedes Exit Opens Space For Industrial Reconfiguration

USMCA Review And Caution From The Mexican Government Increase Political Tension

Dependence On Exports And Impact On Employment Increase Sensitivity Of The Case

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Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Spain installs two giant pipelines 2.2 km off the coast to draw water from the Mediterranean and supply a megafacility capable of producing 200 million liters of drinking water per day.

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A 400-meter colossus powered by natural gas has just set sail from Shanghai to Europe, carrying over 24,000 containers. It is the world’s largest dual-fuel container ship and can cross the planet without refueling even once.

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